Costs of Hopping gas, food and other necessities in May, pushing inflation to a new Four decades high and American families are not given any respite from it rising costs.
Consumer prices increased by 8.6% last A month earlier than 12 months, faster than April year-over-year a plus of 8.3%, the Labor Department said Friday. The new The inflation figure, the largest annual increase since December 1981, will increase pressure on The Federal Reserve (Fed) to continue raising interest rates aggressively.
On a monthly basis, prices jumped 1% from April to May, much faster than the 0.3% increase from March to April. There was a lot behind this increase higher the prices for Food, energy, rent, airline tickets and new and used cars.
Widely price Increases also A rise in so-called “core” inflation, a measure that excludes the volatility of food and energy prices. In May, core prices jumped 0.6%. for a second respectively and is now 6% higher than it was year Ago.
Friday’s report confirmed concern that inflation is widening beyond spike in Energy prices stem from blockages in supply chains and Russia invasion of Ukraine. And the increasing pressure on The Federal Reserve raises interest rates faster – which means higher-cost loans for Consumers and businesses – raises risk of Recession.
Practically every sector has a higher value, said Ethan Harris. head of global economic research in the bank of America. “that it made that it way In every nook and cranny of The economy. That’s the thing that makes it worrying, because it means it’s likely to continue.”
Gas prices jumped 4% just in May rose nearly 50% of a year Ago. They have gone up more this month. The national modified price At the pump $4.99 on Friday, according to AAA.
The cost of Grocery stores rose nearly 12%. last month of year Earlier, the biggest increase since 1979. Restaurant prices jumped 7.4%. in The past yearwhich is the largest 12-month gain since November 1981, reflecting higher Costs for Food and workers.
housing costs also climbing. The government’s Shelter Index, which includes rents, hotel rates, and a metric of How much does it cost to own a file homeincrease 5.5% in The past yearthe largest number since 1991. Air ticket prices have increased by almost 38% in The past yearmore like rise Since 1980.
Rampant inflation in America is putting severe pressures on Families, forcing them to pay a lot more for Food, gas, rent and reduced ability to bear discretion itemsFrom haircuts to electronics. low-income and Hispanic Americans, in Especially, she struggling Because, on Average, larger proportion of Their income is consumed by necessities.
Some evidence in Recent weeks have indicated that inflation may be particularly moderate for Long-term merchandise seized up in Supply chain obstruction and shortage last year. But this trend appears to be mirroring itself in mayo, with used car the prices rising 1.8% after falling for Three consecutive months. new car the prices also Has risen. Clothes prices rose after that declined in April.
in light of Friday’s inflation reading, the Fed is sure to carry it out The fastest series of benefit rate walking long distances in Three decades. By sharply increasing borrowing costs, the Fed hopes to cool spending and growth Enough to reduce inflation without overturning economy in stagnation. for the center bankIt will be difficult to strike a balance.
The Fed has indicated that it will raise its rate key short-term rate by half-Point – double the size of normal height – next week and again in July. Some investors were hoping the Fed would call back that it rate increases to quarter- Increase point when meet in September or maybe even pause Credit tightening. But with Inflation is raging hard, and investors are now increasingly expecting another half-point rise in September, which will be the fourth since April.
Surveys show Americans see high inflation as the highest level in the country problemand the most rejected of President Joe Biden’s behavior of The economy. Republicans in Congress are attacking Democrats on The issue in The run-up to the midterm elections this fall.
Rising inflation forced Rocky Harper of Tucson, Arizona, to start do gig work for delivery companies, on higher of for him regular full time function with a package Delivery Service. for him main He said the job pays $800 a week, which “used to be really good money And he is now just above dirt poor.”
Harper, 43, said he and his fiancée are postponing the marriage because they can’t afford it now. They cut off Netflix and Hulu. His car was the catalytic converter stolen Recently – increasingly common theft – for The rare metals it contains have been released up in price. the will to reform cost 1300 dollars.
“With food, gas and rent – sacred cow’ He said, ‘I’m working tremendously amount of over time, just to be made, just to maintain its consistency. “
A report from the World Bank this week made clear That high inflation is a global problem that threatens to slow down economies around world. Russia’s war in Ukraine has hit hard in Europe, where the utility bills, business Costs and gasoline prices rose because of trust him on Russian oil and natural gas.
for 19 countries who – which use The euro currency, and the inflation that fuels it rising Food and fuel prices hit a record 8.1% last Month, leading The European Central Bank announced on Thursday that it will raise interest rates for The first time in 11 years from in july and again in September.
In the coming months commodity prices in It is expected that the United States will eventually drop. much big retailersIncluding Target, Walmart and Macy’s have now reported that they are stuck with too much of Patio furniture, electronics and other goods they ordered at these items they were in heavier demand They will have to discount it.
even so, rising Gas prices are eroding finances of millions of Americans. Prices at the pump average about $5 a gallon nationally and are close to inflation-adjusted record of It was about $5.40 in 2008.
Search by bank of The Institute of America, which uses anonymous data from millions of Credit and debit to their customers card accounts, shows spending on eat gas up and bigger share of Consumer budgets and congestion out they ability to me buy else items.
For low-income families – as defined with income below $50,000 – spending on Gas reached nearly 10% of all spending on credit and debit cards in The last week of May, the institute said in This week’s report. this up from about 7.5% in February, sharp increase in This short period.
Spending by all bank customers on long lasting goods, like Furniture, electronics and home improvementhas fallen from a year before the institute found. But spend them on Plane tickets, hotels and entertainment continued rise.
Costs of Hopping gas, food and other necessities in May, pushing inflation to a new Four decades high and American families are not given any respite from it rising costs.
Consumer prices increased by 8.6% last A month earlier than 12 months, faster than April year-over-year a plus of 8.3%, the Labor Department said Friday. The new The inflation figure, the largest annual increase since December 1981, will increase pressure on The Federal Reserve (Fed) to continue raising interest rates aggressively.
On a monthly basis, prices jumped 1% from April to May, much faster than the 0.3% increase from March to April. There was a lot behind this increase higher the prices for Food, energy, rent, airline tickets and new and used cars.
Widely price Increases also A rise in so-called “core” inflation, a measure that excludes the volatility of food and energy prices. In May, core prices jumped 0.6%. for a second respectively and is now 6% higher than it was year Ago.
Friday’s report confirmed concern that inflation is widening beyond spike in Energy prices stem from blockages in supply chains and Russia invasion of Ukraine. And the increasing pressure on The Federal Reserve raises interest rates faster – which means higher-cost loans for Consumers and businesses – raises risk of Recession.
Practically every sector has a higher value, said Ethan Harris. head of global economic research in the bank of America. “that it made that it way In every nook and cranny of The economy. That’s the thing that makes it worrying, because it means it’s likely to continue.”
Gas prices jumped 4% just in May rose nearly 50% of a year Ago. They have gone up more this month. The national modified price At the pump $4.99 on Friday, according to AAA.
The cost of Grocery stores rose nearly 12%. last month of year Earlier, the biggest increase since 1979. Restaurant prices jumped 7.4%. in The past yearwhich is the largest 12-month gain since November 1981, reflecting higher Costs for Food and workers.
housing costs also climbing. The government’s Shelter Index, which includes rents, hotel rates, and a metric of How much does it cost to own a file homeincrease 5.5% in The past yearthe largest number since 1991. Air ticket prices have increased by almost 38% in The past yearmore like rise Since 1980.
Rampant inflation in America is putting severe pressures on Families, forcing them to pay a lot more for Food, gas, rent and reduced ability to bear discretion itemsFrom haircuts to electronics. low-income and Hispanic Americans, in Especially, she struggling Because, on Average, larger proportion of Their income is consumed by necessities.
Some evidence in Recent weeks have indicated that inflation may be particularly moderate for Long-term merchandise seized up in Supply chain obstruction and shortage last year. But this trend appears to be mirroring itself in mayo, with used car the prices rising 1.8% after falling for Three consecutive months. new car the prices also Has risen. Clothes prices rose after that declined in April.
in light of Friday’s inflation reading, the Fed is sure to carry it out The fastest series of benefit rate walking long distances in Three decades. By sharply increasing borrowing costs, the Fed hopes to cool spending and growth Enough to reduce inflation without overturning economy in stagnation. for the center bankIt will be difficult to strike a balance.
The Fed has indicated that it will raise its rate key short-term rate by half-Point – double the size of normal height – next week and again in July. Some investors were hoping the Fed would call back that it rate increases to quarter- Increase point when meet in September or maybe even pause Credit tightening. But with Inflation is raging hard, and investors are now increasingly expecting another half-point rise in September, which will be the fourth since April.
Surveys show Americans see high inflation as the highest level in the country problemand the most rejected of President Joe Biden’s behavior of The economy. Republicans in Congress are attacking Democrats on The issue in The run-up to the midterm elections this fall.
Rising inflation forced Rocky Harper of Tucson, Arizona, to start do gig work for delivery companies, on higher of for him regular full time function with a package Delivery Service. for him main He said the job pays $800 a week, which “used to be really good money And he is now just above dirt poor.”
Harper, 43, said he and his fiancée are postponing the marriage because they can’t afford it now. They cut off Netflix and Hulu. His car was the catalytic converter stolen Recently – increasingly common theft – for The rare metals it contains have been released up in price. the will to reform cost 1300 dollars.
“With food, gas and rent – sacred cow’ He said, ‘I’m working tremendously amount of over time, just to be made, just to maintain its consistency. “
A report from the World Bank this week made clear That high inflation is a global problem that threatens to slow down economies around world. Russia’s war in Ukraine has hit hard in Europe, where the utility bills, business Costs and gasoline prices rose because of trust him on Russian oil and natural gas.
for 19 countries who – which use The euro currency, and the inflation that fuels it rising Food and fuel prices hit a record 8.1% last Month, leading The European Central Bank announced on Thursday that it will raise interest rates for The first time in 11 years from in july and again in September.
In the coming months commodity prices in It is expected that the United States will eventually drop. much big retailersIncluding Target, Walmart and Macy’s have now reported that they are stuck with too much of Patio furniture, electronics and other goods they ordered at these items they were in heavier demand They will have to discount it.
even so, rising Gas prices are eroding finances of millions of Americans. Prices at the pump average about $5 a gallon nationally and are close to inflation-adjusted record of It was about $5.40 in 2008.
Search by bank of The Institute of America, which uses anonymous data from millions of Credit and debit to their customers card accounts, shows spending on eat gas up and bigger share of Consumer budgets and congestion out they ability to me buy else items.
For low-income families – as defined with income below $50,000 – spending on Gas reached nearly 10% of all spending on credit and debit cards in The last week of May, the institute said in This week’s report. this up from about 7.5% in February, sharp increase in This short period.
Spending by all bank customers on long lasting goods, like Furniture, electronics and home improvementhas fallen from a year before the institute found. But spend them on Plane tickets, hotels and entertainment continued rise.