The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in June on a seasonally adjusted basis after rising 0.6 percent in May, the U.S. Bureau of Labor Statistics reported today. This was the largest 1-month change since June 2008 when the index rose 1.0 percent. Over the last 12 months, the all items index increased 5.4 percent before seasonal adjustment; this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.
The index for used cars and trucks continued to rise sharply, increasing 10.5 percent in June. This increase accounted for more than one-third of the seasonally adjusted all items increase. The food index increased 0.8 percent in June, a larger increase than the 0.4-percent increase reported for May. The energy index increased 1.5 percent in June, with the gasoline index rising 2.5 percent over the month [Bureau of Labor Statistics, “Consumer Price Index—June 2021,” 2021.07.13].
Used vehicle prices have jumped 45.2% since last June. Energy prices have risen 45.1%. in a year, while people energy (food!) is up only 2.4%.
If we sustain a 5.4% yearly increase in the Consumer Price Index, then come January 1, South Dakota’s minimum wage will increase from $9.45 an hour to $10.00… which is still well below the $13/hour starting wage that Wendy’s at 41st and Louise in Sioux Falls is currently advertising on its blinky sign.