West Virginia Department of Transportation image.
CHARLESTON, W. Va.–West Virginia Transportation Secretary Jimmy Wriston said inflation continues to be a big effect on construction projects.
He noted the nation’s 9.1 percent inflation rate over the past 12 months, a historic high.
“We have seen some minor reductions in gas prices, I think, a little bit around the state, but I don’t think they were anywhere near the reductions that will have the impact that we’re looking for,” Wriston said. “So most of the issues we’re still struggling with.”
This is the second month in a row that Wriston has described the challenges of high inflation on infrastructure projects.
“We are still seeing supply chain issues,” he said. “We’re having a very difficult time getting vehicles and equipment. Hopefully we can do better with that. Equipment. Materials. Prices are up everywhere. We’re facing inflation across the country.”
The latest monthly release of the Consumer Price Index by the U.S. Bureau of Labor Statistics showed that inflation increased 1.3 percent in June.
The monthly increase was driven by gasoline, shelter and food. Energy costs rose 7.5 percent over the month of June. Gasoline costs rose 11.2 percent.
The report’s major takeaway was that inflation rose by 9.1 percent over the past 12 months. That’s the largest 12-month increase since 1981.
Food costs rose 10.4 percent over the year, also the highest levels since 1981.
And energy costs rose 41 percent, the highest 12-month increase since 1980.