Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
INFORMATIONAL MEMO <br />Page 2 <br />12 -month change, <br />June 2021 - June 2022 <br />Fuel oils and other fuels 70.4% <br />Motor fuel (including gas of all types) <br />Natural gas <br />Electricity 13.7% <br />New vehicles 11.4% <br />Food 10.4% <br />Household furnishings and supplies 10.2% <br />All Items 9.1% <br />Transporation services 8.8% <br />Used vehicles 7.1% <br />Shelter 5.6% <br />Apparel 5.2% <br />Medical care services 4.8% <br />Recreation services 4.7% <br />0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% <br />(Selected statistics pulled from U.S. Bureau of Labor Statistics) <br />38.4% <br />60.2% <br />Drivers of Inflation <br />It is difficult to explain the factors causing high inflation in the early 1980's without <br />providing perspective from the decade before. <br />High inflation in the 1980's was precipitated by 12 years of steadily increasing inflation, <br />worsening recession, unemployment, volatile energy and gas prices, supply shortages, <br />and increased Consumer Price Index (CPI) for essential items especially gas/energy, <br />food, and medical care. <br />High inflation in 2022 had a shorter lead in period which began in early 2020 with the <br />COVID-19 Global Pandemic which caused a recession, supply chain interruptions, <br />increased gas prices, increased consumer demand, an influx of cash into the economy <br />from pandemic relief payouts, and increased CPI. <br />Drivers of Inflation <br />Recession <br />1980: The economy had been in a deep recession since the mid - <br />1970's that continued into the early 1980's. <br />2022: The Covid-19 Global Pandemic caused a recession in 2020. <br />World Conflict <br />1980: Vietnam War costs from the 1970's, oil embargo that caused <br />energy shortages, and conflict with Iran. <br />2022: Russian Invasion of Ukraine is causing prices to go up over <br />fear of future supply disruptions especially with commodities. <br />