Summary: Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve, with higher borrowing costs to follow. Consumer prices soared 9.1 per cent compared with a year earlier, the government said Wednesday, the biggest 12-month increase since 1981, and up from an 8.6 per cent jump in May. On a monthly basis, prices rose 1.3 per cent from May to June, another substantial increase, after prices had jumped one per cent from April to May. The ongoing price increases underscore the brutal impact that inflation has inflicted on many families, with the costs of necessities, in particular, rising much faster than average incomes. Lower-income and Black and Hispanic Americans have been hit especially hard, because a disproportionate share of their income goes toward such essentials as housing, transportation and food. Source: https://globalnews.ca/news/8986310/us-inflation-june-2022/

1. COST OF LIVING –
UNITED STATES –
JUNE 2022
Paul Young CPA CGA
July 13, 2022

2. PAUL YOUNG - BIO
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. AGENDA
• CPI Index
• BMO – Consumer Price Index – United States
• Housing Price Index
• Gasoline Prices
• Average housing Price
• Producer Price Index
• Freight Index
• Blog – Cargo
• Blog – Supply Chain Disruption
• Blog – Stimulus and Inflation

4. THE USA – CPI INDEX
Inflation - CPI - June
2022.pdf

5. THE USA – CPI INDEX
Inflation - CPI - June
2022.pdf

6. THE USA – TARGET
CPI - Inflation - USA -
May 2022.pdf Global Forecast -
May 2022.pdf
• Inflation to hit a target of 1.9% to 2.2% range will require a drastic shift in policies. The USA like
many countries has issues with innovation, skill gaps, productivity, government fiscal gap, and
household debt.
• Inflation new target likely needs to be 3.5% to 4.1% due to shift of both the public and private
sector to ESG reporting and the green economy.

7. BMO –
CONSUMER
PRICE INDEX
Source –
https://economics.bmo.com/en/publications/detail/73bfff0d-
5833-4e0d-bf16-70dcd961be68/

8. BMO – CONSUMER PRICE INDEX
Source – BMO - https://economics.bmo.com/en/publications/detail/50960187-d37a-
449c-86bb-00b6d51efb89/
Source –
https://economics.bmo.com/en/publications/detail/73bff
f0d-5833-4e0d-bf16-70dcd961be68/
CPI = Cannonading
Price Increases.pdf
U.S. CPI Just Keeps
on Peaking.pdf

9. OECD AND INFLATION

10. PRODUCER PRICE INDEX
Source – USA Government and BMO
No Price Relief for
U.S. Producers.pdf

11. HOUSING PRICE INDEX
Source - https://fred.stlouisfed.org/series/CSUSHPINSA

12. PRODUCE
PRICE INDEX
Source -
https://www.bls.gov/news.re
lease/ppi.nr0.htm
PPI - U.pdf

13. GASOLINE
PRICES
Source -
https://gasprices.aaa.com/

14. AVERAGE HOUSE PRICE
Source - https://fred.stlouisfed.org/series/MSPUS

15. FREIGHT COSTS
Source - https://fred.stlouisfed.org/series/PCU484121484121

16. CARGO
Blog - Retail Cargo Expected to Set Record in August
“Strong consumer demand has outpaced supply chain operations since late last year and could remain a challenge as the
holidays approach," Gold added. "The continuing lack of labor, equipment and capacity has highlighted systemic issues and the
need to create a truly 21st century supply chain to ensure resiliency against the next major disruption. Passage of infrastructure
legislation currently pending in Congress is a key step in that direction. We need continued focus by the administration to help
address these issues as well.”
Shipping and congestion continue to be a concern. “The strain of the continuing economic expansion is putting considerable
pressure on the logistics supply chain,” Hackett Associates Founder Ben Hackett said in a statement. “We’re seeing a lack of
shipping capacity combined with port congestion as vessels line up to discharge goods from both Asia and Europe. Delays are
stretching to landside as port terminals struggle with space shortages, and labor challenges are affecting ports, railroads and
trucking companies alike. This part of the recovery is not a pretty sight.”
https://www.mhlnews.com/global-supply-chain/article/21171732/retail-cargo-expected-to-set-record-in-
august?utm_source=IY+IW+QM+News&utm_medium=email&utm_campaign=CPS210809063&o_eid=7930I4506489J2B&rdx.ident%5Bpull%5
D=omeda%7C7930I4506489J2B&oly_enc_id=7930I4506489J2B
This ties nicely into my work on United States retail sales - https://www.slideshare.net/paulyoungcga/retail-sales-usa-june-2021
Blog – How to build a resilient Supply Chain using Data and AI
https://ibm.box.com/s/bqy9mr0ktlgi64sbf49o4rg5d9w0rqkn

17. SUPPLY CHAIN DISRUPTION
https://www.bnnbloomberg.ca/china-s-trade-unexpectedly-surges-despite-virus-outbreaks-
1.1648671?taid=61373efe2b6d260001ced600&utm_campaign=trueAnthem+Manual&utm_medium=trueAnthem&utm_s
ource=twitter
There are enormous issues with ports, rails, and other parts of the infrastructure's ability to move goods to the end
consumer. https://ibm.box.com/s/bqy9mr0ktlgi64sbf49o4rg5d9w0rqkn

18. STIMULUS AND INFLATION
COVID inflation is everywhere, but some have more of it than others. Among advanced economies, the U.S. is starting to
look like the outlier.
That’s probably because it did more fiscal stimulus in the pandemic, economists say. The consensus is that high inflation
won’t last long. But even if that’s right, the current elevated level has the potential to cause problems of its own -- for
President Joe Biden’s most ambitious economic plans at home, and for other countries too.
August data due Tuesday is set to show annual growth in U.S. consumer prices stayed above 5 per cent in August for a
third straight month, according to Bloomberg surveys. The median forecast was 5.3 per cent, down from 5.4 per cent the
previous month. Most other developed countries have seen a spike too -- just not nearly as big.
Source - https://www.bnnbloomberg.ca/u-s-inflation-is-starting-to-look-like-a-stimulus-led-outlier-1.1651314
My work - https://www.slideshare.net/paulyoungcga/fiscal-management-public-sector-united-states-250175562

19. WAGES
Blog - Proportion of businesses raising pay hits 48-year high: NFIB
The proportion of small businesses that raised pay in October hit a 48-year high, with a net 44% increasing compensation
and a net 32% planning to do so in the next three months, the National Federation of Independent Business (NFIB) said
Tuesday.
Optimism among owners toward the business outlook during the next six months slumped to the lowest level since
November 2012, NFIB said, citing a survey of 1,431 small businesses. “Owners have grown pessimistic about future
economic conditions,” the federation said, noting that 49% said they could not fill job openings and all but 10% reported
disruption from supply chain bottlenecks.
“One of the biggest problems for small businesses is the lack of workers for unfilled positions and inventory shortages,
which will continue to be a problem during the holiday season,” NFIB Chief Economist Bill Dunkelberg said.
https://www.cfodive.com/news/businesses-raising-pay-hits-48-year-high-
nfib/609756/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-11-
10%20CFO%20Dive%20%5Bissue:37915%5D&utm_term=CFO%20Dive
Blog – Employment – United States – October 2021 - https://www.slideshare.net/paulyoungcga/employment-and-labour-
market-the-united-states-october-2021

20. GREEN INFLATION
Blog - Decarbonization And 'Greenflation'
 Accelerating the transition toward low or net-zero carbon emissions is necessary to keep global warming at
theoretically safe levels.
 That will likely bring price shocks associated with rising metal prices, energy costs, and carbon taxes – what has
been called “greenflation”.
 Greening the economy will also require public spending and redistributive policies.
https://seekingalpha.com/article/4474720-decarbonization-and-greenflation?mail_subject=decarbonization-and-
greenflation&utm_campaign=nl-macro-view&utm_content=link-0&utm_medium=email&utm_source=seeking_alpha
The world including the United States are seeing highest inflation since the 1980s (Source -
https://www.slideshare.net/paulyoungcga/cost-of-living-the-united-states-inflation-november-2021) and environment
- https://www.slideshare.net/paulyoungcga/how-to-mitigate-the-threats-of-climate-change-250803941
Any significant change in tax and environmental policies will lead to changes in input costs for many businesses.
There are better ways to fixed issues with environment through more balance of policies that will not drive up the
inflation rates across the globe!
Additional link - https://www.slideshare.net/paulyoungcga/how-to-mitigate-the-threats-of-climate-change-250803941

21. SUMMARY
• US inflation accelerated in June by more than forecast, underscoring relentless price pressures that will
keep the Federal Reserve on track for another big interest-rate hike later this month.
• The consumer price index rose 9.1 per cent from a year earlier in a broad-based advance, the largest
gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation
gauge increased 1.3 per cent from a month earlier, the most since 2005, reflecting higher gasoline,
shelter and food costs.
Source - https://www.bnnbloomberg.ca/u-s-inflation-quickens-to-9-1-amping-up-u-s-fed-pressure-to-
go-big-1.1791297
Blog – Cost of living (Inflation) – The United States – June 2022
Inflation - CPI - June
2022.pdf
U.S. CPI Just Keeps
on Peaking.pdf
Small Biz Hiring and
Wages Continue Growth - CPA Practice Advisor.pdf
Credit profile of most
construction entities to remain resilient Icra Mint.pdf
Commodity
Prices.pdf
Weekly market
commentary BlackRock Investment Institute.pdf
Federal Reserve Bank
researchers openly acknowledge the inevitability of recession – Bill Mitchell – Modern Monetary Theory.pdf
U.S. inflation
unexpectedly hits 9.1_, setting new 40-year high - National Globalnews.ca.pdf
U.S. CPI Just Keeps
on Peaking.pdf
Inflation - CPI - June
2022.pdf
Bitcoin Settles in
Calm Before Possible US Inflation Storm - BNN Bloomberg.pdf
US June CPI +9.1_ y_y
vs +8.6_ expected Forexlive.pdf
Millions get jobs as
GDP falls.pdf
The Sydney Energy
Forum casts China as the West's biggest energy security threat Fortune.pdf
As Volatile Season
Wears On, Farmers’ Risk Management Needs Increasing Seeking Alpha.pdf
TipRanks News –
Stock Market News, Research and Ideas.pdf
Tracking regulatory
changes in the Biden era.pdf
Why the Fed is taking
a hammer to the housing market The Hill.pdf
Analysis Canadian
household debt a serious impediment to economic growth Canadian Mortgage Professional.pdf
Student loan debt
Another hurdle for first-time homebuyers – Alice Echo News Journal.pdf
Traders Fully Price
75-Basis-Point Fed Interest-Rate Hike at July Meeting - Bloomberg.pdf
A huge H1-B visa
backlog is blocking high-skilled immigration to the US - Vox.pdf
Summary:
Surging prices for gas, food and rent catapulted U.S. inflation to a new four-
decade peak in June, further pressuring households and likely sealing the
case for another large interest rate hike by the Federal Reserve, with higher
borrowing costs to follow.
Consumer prices soared 9.1 per cent compared with a year earlier, the
government said Wednesday, the biggest 12 -month increase since 1981,
and up from an 8.6 per cent jump in May. On a monthly basis, prices rose
1.3 per cent from May to June, another substan tial increase, after prices
had jumped one per cent from April to May.
The ongoing price increases underscore the brutal impact that inflation has
inflicted on many families, with the costs of necessities, in particular, rising
much faster than average inc omes. Lower-income and Black and Hispanic
Americans have been hit especially hard, because a disproportionate share
of their income goes toward such essentials as housing, transportation and
food.
Source: https://globalnews.ca/news/8986310/us-inflation-june-2022/
1. Bitcoin - https://www.bnnbloomberg.ca/bitcoin-settles-in-calm-before-possible-us-inflation-
storm-1.1791143
2. Inflation - https://www.forexlive.com/news/us-june-cpi-91-yy-vs-86-expected-20220713/
U.S. inflation quickens
to 9.1_, amping up U.S. Fed pressure to go big - BNN Bloomberg.pdf