The inflation crisis of 2022 grew more fearsome with Friday’s release by the U.S. Bureau of Labor Statistics of a worse-than-expected consumer price index (CPI) report. For the 12 months through May 2022, CPI shot +8.6% higher, the highest rate since the inflation crisis of the late 1970s and early 1980s. 

Higher gas prices are the main factor. Meanwhile, other threats to U.S. economic growth linger, including the war in Ukraine, supply chain bottlenecks, and Covid subvariants. The unusual turbulence shortens runway room for a soft-landing and increases the chance of a recession, but the Federal Reserve still has a chance of convincing consumers that it will end inflation fast.