U.S. inflation surge has local impacts
Jul. 14—CHEYENNE — Inflation, which has garnered headlines and public attention throughout the nation, is also affecting our region, economic statistics show.
Economists noted that this is also putting pressure on consumers locally. And some politicians in Wyoming continue to attack the Biden administration over the rapid increase in prices.
New federal stats show that at the national level, the Consumer Price Index for All Urban Consumers surged 9.1% last month versus a year earlier. This is the biggest percentage CPI-U gain since November 1981.
"The increase was broad-based, with the indexes for gasoline, shelter and food being the largest contributors," the U.S. Bureau of Labor Statistics reported Wednesday. For BLS regions that include Wyoming, the CPI trends are similar.
In the agency's West region, the CPI-U gained 8.8% last month versus June 2021, the Labor Department sub-agency reported. "The June increase was influenced by higher prices for gasoline."
Energy prices surged 37% in the Western U.S., and food prices climbed 11%. This BLS region includes Wyoming and the nearby states of Colorado, Idaho, Montana and Utah.
For a region that is slightly more specific to Wyoming, prices actually rose at a larger rate than for either the West as a whole or for the entire U.S., on average. In the Mountain Division, the CPI-U rose 9.9% last month from June 2021. The division consists of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming, noted Nicholas Chung, an economist in the BLS Office of Economic Analysis and Information, in response to the Wyoming Tribune Eagle's inquiry.
In Wyoming, two economists noted to the WTE that inflation's impacts are playing out here.
The statistics show "there's still strong inflationary pressure on our region and nationally — still the highest in decades," wrote Anne Alexander, an economist at the University of Wyoming, in an email. "The big 'bright spot' — not reflected in last month's numbers released today — is that energy prices are moderating, which is good news for the Wyoming driver!"
While average prices in Wyoming for a gallon of gas have fallen in recent days, the decrease has been less than at the national level, industry figures show. (A future news article in the WTE will examine this trend.) For the week through Monday, the prices at the gas pump declined 4 cents per gallon to $4.81 statewide, according to GasBuddy.com. In approximately the same period of time, AAA reported Monday, gas fell 12 cents in the U.S. to $4.67.
More broadly on inflation, Alexander pointed out, "food prices are still quite high, while 'core items' — those outside of food and energy — have begun to moderate." The trends reported so far are "tough for those on fixed incomes, and impacts everyone (inflation is a tax on everyone)," the economist wrote. "I am hopeful that inflationary pressures will start to moderate in the fourth quarter of the year, but until then I think we are still in for a bumpy ride."
Although down from recent months, another economist said prices per barrel of crude oil are hovering around $100. Wednesday afternoon, one widely used measure showed $96.42, according to Wall Street Journal tracking.
"The longer the war in Ukraine lasts, the longer oil prices and agricultural commodity prices stay high," wrote Nick Colsch, director of the Wyoming Center for Business and Economic Analysis at Laramie County Community College. He also pointed to high prices for housing in Cheyenne and the rest of Laramie County.
Reacting to the national CPI release, U.S. Sen. John Barrasso, R-Wyo., said "the economic sirens are blaring and economists are warning of looming recession." He blamed President Joe Biden's policies.
"Working families are struggling to make ends meet as they continue to face the worst inflation in more than 40 years," Barrasso said in a statement. "The price of groceries, gas, rent and utilities are skyrocketing. All while paychecks aren't keeping up."
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