US inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the economy. That will likely push the Federal Reserve to extend an aggressive series of interest-rate hikes and adds to political problems for the White House and Democrats. The consumer price index increased 8.6 per cent from a year earlier in a broad-based advance, Labor Department data showed Friday. The widely followed inflation gauge rose 1 per cent from a month earlier, topping all estimates. Shelter, food and gas were the largest contributors. The so-called core CPI, which strips out the more volatile food and energy components, rose 0.6 per cent from the prior month and 6 per cent from a year ago, also above forecasts. Source - https://www.bnnbloomberg.ca/u-s-inflation-unexpectedly-accelerates-to-40-year-high-1.1777105

1. COST OF LIVING –
UNITED STATES –
JUNE 11, 2022
Paul Young CPA CGA
June 11, 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 CPI - Inflation - USA -
May 2022.pdf

5. THE USA – CPI INDEX
CPI - Inflation - USA -
May 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/1798839d-7858-
4df6-b46f-7cec5b655a9c/

8. BMO – CONSUMER PRICE INDEX
Source – BMO - https://economics.bmo.com/en/publications/detail/31f5c274-1ed1-4698-
b167-9a99495fb4c8/
Canadian CPI Who'll
Stop the Rain .pdf
Source –
https://economics.bmo.com/en/publications/detail/1798
839d-7858-4df6-b46f-7cec5b655a9c/

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 to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the
economy. That will likely push the Federal Reserve to extend an aggressive series of interest-rate hikes and adds to
political problems for the White House and Democrats.
• The consumer price index increased 8.6 per cent from a year earlier in a broad-based advance, Labor Department data
showed Friday. The widely followed inflation gauge rose 1 per cent from a month earlier, topping all estimates. Shelter,
food and gas were the largest contributors.
• The so-called core CPI, which strips out the more volatile food and energy components, rose 0.6 per cent from the prior
month and 6 per cent from a year ago, also above forecasts.
• Source - https://www.bnnbloomberg.ca/u-s-inflation-unexpectedly-accelerates-to-40-year-high-1.1777105
• Biden was around during those times - https://www.britannica.com/biography/Joe-Biden
Blog – Cost of Living – The United States – May 2022
CPI - Inflation - USA -
May 2022.pdf
Global Forecast -
May 2022.pdf
U.S. CPI Higher,
Faster, Broader.pdf
U.S. CPI Higher,
Faster, Broader.pdf
U.S. Inflation At
Highest In Four Decades As Fuel Prices Soar OilPrice.com.pdf
Energy and food
drive US inflation to highest for 40 years.pdf
Housing Market
Predictions 2022 Will Prices Drop In The Third Quarter – Forbes Advisor.pdf
Remote work has
caused housing prices to shoot up study – The Hill.pdf
Home Buyers Are
Relocating to Extreme Drought Regions - Bob Vila.pdf
US Farmer Sentiment
Dives As Ag Input-Costs Skyrocket ZeroHedge.pdf
These products have
had some of the biggest price increases in the last year The Hill.pdf
McDonald's wants
frequent but smaller price increases to manage inflation without hurting customers too much - MarketWatch.pdf
Climate change could
dampen insurers’ quest for profit from Africa Business Insurance.pdf
How Much Does An
Electric Car Actually Cost – Otosection.pdf
The World Is
Scrambling For Lithium Supply OilPrice.com.pdf
10 Reasons Why
Electric Vehicles are (Still) So Expensive.pdf
How inflation could
curb the rise of green energy - Archyde.pdf
Summary:
US inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming
entrenched in the economy. That will likely push the Federal Reserve to extend an aggressive
series of interest-rate hikes and adds to political problems for the White House and Democrats.
The consumer price index increased 8.6 per cent from a year earlier in a broad-based advance,
Labor Department data showed Friday. The widely followed inflation gauge rose 1 per cent from
a month earlier, topping all estimates. Shelter, food and gas were the largest contributors.
The so-called core CPI, which strips out the more volatile food and energy components, rose 0.6
per cent from the prior month and 6 per cent from a year ago, also above forecasts.
Source - https://www.bnnbloomberg.ca/u-s-inflation-unexpectedly-accelerates-to-40-year-high-
1.1777105
1. Energy Costs - https://oilprice.com/Energy/Energy-General/US-Inflation-At-Highest-In-Four-
Decades-As-Fuel-Prices-Soar.html
2. Food Costs - https://ca.style.yahoo.com/us-inflation-hits-fastest-pace-125901603.html
3. Housing Costs - https://www.forbes.com/advisor/mortgages/housing-market-predictions/
4. Remote working - https://thehill.com/changing-america/sustainability/infrastructure/3518838-
remote-work-has-caused-housing-prices-to-shoot-up-study/
5. Water https://www.bobvila.com/articles/home-buyers-relocate-to-extreme-drought-regions/
6. Farmer input costs - https://www.zerohedge.com/commodities/us-farmer-sentiment-dives-ag-
input-costs-skyrocket
7. Price Increases - https://thehill.com/policy/finance/3519124-these-products-have-had-some-of-
the-biggest-price-increases-in-the-last-year/