Macomb Today

The U.S. Labor Department reports inflation is the highest it's been in four decades, and residents in Michigan are feeling the squeeze.

The DOL's Bureau of Labor Statistics (BLS) reports the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6% in January; the year-over-year increase from January 2021 to January 2022 was 7.5%, the largest since February 1982.

"Increases in the indexes for food, electricity and shelter were the largest contributors to the seasonally adjusted all-items increase," the BLS stated in report, released Feb. 10.

The 12 Midwest states, which include Michigan, saw a 6.6% jump in the CPI from October 2021 to the same time last year, according to the Detroit Free Press (DFP). Nationally, the CPI increased 6.2% in that same time, DFP reports. 

In the Midest region, food prices rose 6%, energy prices rose 33.3%, and prices for used cars and trucks rose 9.8%, the DFP reports. The continuing increase in prices are straining the budgets of many families in Michigan, DFP reports, with some families forgoing certain activities such as dining out or taking vacations. Lower income families could be forced to cut necessities. 

The CPI-U report states nationally, food was up 0.9% in January over December and 7% from January 2021 to January 2022. Energy increased by 0.9% in January and 27% year-over-year. New cars cost 12.2% over 2021, while used car prices have shot up over 41%. 

Despite wages increasing at the fastest pace in the past 20 years, according to the Associated Press, the jump in the costs of good and services are wiping out those gains.

Comerica Bank's chief economist Robert Dye, told the DFP that workers are excited to get a 3% wage increase, "while not realizing that inflation is running at 6% a year and their purchasing power is going backwards."

The lingering effects of the COVID-19 pandemic, including materials, products and labor shortages, have impacted prices for many goods. Sectors not directly impacted by the pandemic, such as housing and health insurance, have also seen costs increase, according to the Associated Press. 

Some companies are passing the higher costs of doing business on to customers. Starbucks and Chipotle have hiked menu prices by as much as 10% to offset rising product and labor costs, the AP reports.

McLaughlin & Associates, a conservative survey and research group, released a survey that suggests 2022 has brought a greater concern for the economic state of the country compared to similar polling in 2021. 

The poll, conducted Jan. 13-18, found 31% of poll respondents reported the economy is their greatest concern; 23% respondents reporting social issues were their greatest concern. In a March 2021 poll conducted by McLaughlin & Associates, economic concerns were top of mind for 25% of those surveyed. Concerns over social issues were basically unchanged, with 22% of those surveyed most concerned with social issues.

With record-high inflation and economic issues taking the top spot on voters' list of concerns, the same McLaughlin & Associates poll found that 57% of poll respondents  disapprove of President Joe Biden's job performance, while 41% approve.