Economy
13 July 2022
US inflation rate reaches 9.1% for June, a new 40-year high
The monthslong rise in prices continues, according to the US Bureau of Labor Statistics.

The monthslong rise in prices continues, according to the US Bureau of Labor Statistics.
June brought the latest in a series of 40-year highs for inflation.
The monthly reading of the Consumer Price Index from the US Bureau of Labor Statistics showed a year-over-year increase of 9.1%. It was the largest 12-month increase since November 1981.
It showed inflation continuing its monthslong rise in 2022. The month-over-month increase in the CPI was 1.3%. This followed a 1% increase in May.
While the primary contributor was a 60% year-over-year spike in gas prices that was the highest since 1981, the food index was also among the most prominent drivers of the increase. It increased 1% in June following a 1.2% increase the prior month. An index that breaks out prices for food consumed at home rose 12.2% over the last 12 months, which was the largest increase since the period that ended in April 1979.
The core inflation rate, which leaves aside the volatile food and energy markets, was up 5.9% year-over-year, and 0.7% month-over-month, reflecting a “broad-based” increase in almost all of its measures. This included:
In an effort to tame inflation, the Federal Reserve acted in June to raise interest rates by 0.75%, which was its highest increase since 1994. Even before Wednesday’s reading, there was an emerging consensus among economists that another hike is likely in July.
The Fed’s tools are designed to cool demand. But Federal Reserve Bank of San Francisco Senior VP of Economic Research Adam Hale Shapiro recently conducted an analysis that showed supply factors play a big role, accounting for half of the rise of current inflation. Demand factors, meanwhile, accounted for 30%, the analysis showed.
Consumers increasingly see supply issues behind rising prices, as well. A poll released recently by the Consumer Brands Association showed that consumers increasingly blamed supply chain issues for grocery inflation over the pandemic and other issues.
On the demand side, the current picture will come more fully into focus when the federal government releases the latest data for monthly retail sales on Friday.
The National Retail Federation focused its response to the news on actions that the administration of President Joe Biden and Congress can take.
"NRF consumer surveys and economic research indicate that consumers continue to modify their behavior and change spending patterns to adapt to price increases in a wide range of goods and services. But modified behavior and changed spending patterns alone aren’t sufficient to help offset price increases that impact households," said NRF President Matthew Shay, in a statement. “We need to support other policy measures that will lower costs, like the recent passage of the Ocean Shipping Reform Act for which we thank the administration and bipartisan congressional majorities for supporting. In addition, we encourage the administration to act quickly and remove China tariffs that cost American families more than $1,200 annually."
The data suggests that there is some divergence emerging between ecommerce and the wider price picture. The inflation reading for the overall economy comes a day after the Adobe Digital Price Index showed online inflation was increasing by a more modest 0.3% year-over-year, while falling 1% month-over-month. However, the rising cost of fuel and transportation has added pressure on margins and difficulty for all businesses, including those who sell online.
It leads to the question: Can ecommerce provide some relief from inflation by providing a source of cheaper goods at a time when Americans are in search of discounts? The data suggests that there could be a benefit in embracing this theme for brands and retailers.
To be sure, brands and retailers face their own price pressures due to inflation, as rising fuel and transportation costs take a toll on margins. They also face rising customer acquisition costs, and continued supply issues.
Not to mention, consumers are more likely to seek out essentials first as prices rise further, meaning categories where ecommerce is especially strong like apparel, beauty and even electronics may be facing a pullback.
Still, it could be especially appealing to double down on inflation-era messaging amid the summer of sales. After all, heavy discounting is already visible across the retail landscape as retailers try to move out inventory that was overbought in the supply chain crunch that helped to cause inflation in the first place. It seems especially fitting that this data arrives during Prime Day, when Amazon and a host of other retailers are offering big deals in the middle of summer.
On the Move has the latest hiring update from The Vitamin Shoppe and At Home.
Heidi O’Neill has a new role at Nike. (Courtesy photo)
This week, Unilever, Nike and BigCommerce are seeing major transitions in the executive ranks. Meanwhile, The Vitamin Shoppe named a permanent CEO, and At Home brought on a longtime Walmart executive as president.
Conny Braams. (Courtesy photo)
Consumer goods giant Unilever announced key changes in top leadership roles. These include:
Graeme Pitkethly will retire as chief financial officer, effective at the end of May 2024. The board is set to launch a formal search for his successor. Pitkethly has been with Unilever for 21 years.
Conny Braams, who serves as chief digital and commercial officer, will leave the company, effective August 2023. Braams previously held senior management roles including Executive Vice President (EVP) of Middle Europe; and EVP Foodsolutions Asia, Africa and Middle East.
Craig Williams. (Courtesy photo)
Nike, Inc. announced several key leadership changes focused on consumer-led growth and marketplace. They are as follows:
Heidi O’Neill who is currently president of consumer and marketplace, will become president of consumer, product and brand.
Craig Williams, who is currently president of the Jordan Brand, will become president of geographies and marketplace at Nike, Inc.
Matthew Friend, EVP and Chief Financial Officer at NIKE, Inc., will expand responsibilities to include procurement, global places and services and demand and supply management.
Jared Carver will serve as CEO of Converse. Over the last four years, he served as VP/GM of North America for Converse.
Scott Uzzell, the previous CEO of Converse, transitioned to a new role as VP/GM, North America for Nike, Inc.
“These shifts will allow us to streamline our focus across product, brand storytelling and marketplace, mining deep consumer insights to deliver breakthrough innovation and engagement, while building long-term growth and profitability,” said Nike CEO John Donahoe, in a statement.
Lee Wright. (Courtesy photo)
Lee A. Wright was named CEO of The Vitamin Shoppe on a permanent basis, after serving as interim CEO since January 2023. Wright previously served as Chief Commercial Officer of Franchise Group and in executive roles at Conn’s.
Muriel Gonzalez was promoted to president of the retailer, after serving as EVP and chief merchandising and marketing officer of The Vitamin Shoppe since August 2020.
BigCommerce announced the following leadership roles:
Daniel Lentz was promoted to chief financial officer of BigCommerce, effective July 1. He previously served as SVP of finance and investor relations. Lentz will succeed CFO Robert Alvarez, who is retiring after a 12-year stint as CFO.
Chuck Cassidy was promoted to general counsel, effective June 2. Cassidy previously served as VP and associate general counsel. He will succeed Jeff Mengoli, who is retiring.
Hubert Ban was named chief accounting officer. He will replace Vice President of Accounting and Principal Accounting Officer Thomas Aylor, who departed the ecommerce platform on May 19.
Jeff Evans. (Courtesy photo)
Jeff Evans was named president and chief merchandising officer of At Home, the home goods retailer.
Evans previously served as EVP of entertainment, toys and seasonal at Walmart, managing the largest general merchandise business for the retailer. He rose to the position after serving in executive roles at Walmart US and Sam’s Club.