US Inflation Hitting Hard: The cost of gas, food, and other necessities has been rising over the past few months in the US, causing Inflation to rise to a new four-decade high. This has been difficult for American households to keep up with the surging prices.
The rampant Inflation in America has been imposing pressure on families to pay more for food, gas, and rent, meaning they have less to afford for discretionary items, including electronics or even going to the salon.
Although Economists expect US Inflation reduction within the year, it has risen so high that it has become a burden.
Read more of US Inflation problems for the details.
US Inflation impacts citizens
Since the start of the year, there has been rampant Inflation in the United States, and households do not have it easy. Consumer prices surged 8.6 percent faster than April’s year-over-year surge of 8.3 percent.
Every month of this year, prices jumped 1 percent from April to May and steeply rose from the 0.3 percent increase from March to April. Not only has the cost of food and rent been hiking, but one to blame is the weekly gas price increase.
This rampant Inflation in the US has been forcing people to spend more of their money on commodities, leaving them no choice but to lessen their budget on discretionary items.
Although there have been reports from Economists that the Inflation may decrease soon, it hit so high that even a slight decrease is still high. A lot has been increasing lately because of the domino effect the costs bring, which only means that airline tickets, hotel rooms, cars, and rentals have also raised prices.
According to another economist, their price increase only means that the US has a long way to go before US Inflation issues goes away and returns the prices to a more acceptable and affordable level.
Also Read: Russia will not stop the war in Ukraine, US Intelligence Says
So why is US Inflation 2022 impacting people
Why is US Inflation so High? – The Problem
This year’s inflation is so high that it has been the highest since 1981 in the United States.
Food prices rose to 1.2% month over month, which is 10.1% higher than last year. Moreover, the energy prices were up by 3.9% every month and are already up by 34.6% over the past year.
But why is US Inflation Hitting Hard?
First, Inflation has been increasing not only in the United States but worldwide, carrying food and energy prices have grown with it. Moreover, the rise is primarily driven by consumer demand after the COVID-19 pandemic and the Russian invasion of Ukraine.
Because of this, the monthly food price index from the United Nations Food and Agriculture Organization tracks the prices of globally traded food commodities. Aside from that, the invasion of Russia has caused an increase in the oil prices that were already high because of the consumer demand after the COVID pandemic and only doubled the prices.
Economists describe Inflation as coming from “history” but repeat that it won’t last long. If you try to recall the law of supply and demand, it pretty much explains the increase in the inflation rate in the United States and worldwide.
If the Russia and Ukraine war continues, the consequences would be a lack of oil supply. However, demand is high; therefore increase in gas would continue to happen as well.
Now, if gas prices continue to hike, other commodities, especially food, will also increase. That’s why having the war, of course, has humanitarian consequences, but it also has economic consequences.
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