Prices in June continued to rise and reached 9.1 percent from last year. This marks the fastest pace since 1981 and continues many’s concerns about a looming recession. But, some are hopeful that July’s inflation index will prove to be lower, especially as gas prices are tending to mellow after peaking at an average of $5.oo. But, gas prices are unpredictable and some experts believe gas prices will increase once again. Either way, the steep prices continue to prove how difficult things can be at the moment for families across the nation.
Inflation continues to hit hard:
Groceries: up 12% in past year –>Biggest annual increase since 1979
Chicken: Up 19% in past year–>Biggest increase ever
Gas up 60%–>Biggest since 1981
Electricity: Up 14% –>Biggest since 2006
Rent: Up 5.8% –>Biggest since 1986
— Heather Long (@byHeatherLong) July 13, 2022
According to the report, food and rent became much more expensive. Founder of MacroPolicy Perspectives, Julia Coronado, said the report was “ugly,” saying “I don’t think there is anything good about this report, as far as the Fed is concerned, as far as the U.S. consumer is concerned.” The Fed might increase interest prices again, which they did recently to try to compete with the continued increasing inflation.
As the Fed raises interest rates to tame inflation, it could lock would-be home buyers into rentals and keep a hot market under pressure. https://t.co/4tKrfLIjIO
— The New York Times (@nytimes) July 12, 2022
Of course, the news began to trend on Twitter, with “9.1” being the number one thing to surface in people’s tweets and a lot of criticism towards President Joe Biden. “Inflation continues to soar. 9.1% in June – the highest rate in 41 years. Instead of helping American families by getting our economy back on track, Democrats are proposing more reckless spending and higher taxes. Unacceptable,” representative Adrian Smith commented on Twitter.
Today’s report is a reminder that inflation is too high – fighting inflation is my top economic priority. And while the numbers today are not acceptable, they are also outdated.
In the past 30 days, the average price of gas has dropped by 40 cents a gallon.
— President Biden (@POTUS) July 13, 2022
On Twitter, Biden referenced gas prices lowering a little bit, noting “In the past 30 days, the average price of gas has dropped by 40 cents a gallon. That’s breathing room for American families, but oil prices have come down $20/barrel while gas at the pump has only come down 40 cents. Oil and gas companies must pass these lower costs on to consumers.” Still, with rent prices, groceries, and gas, many are worried inflation will continue to rise and put more pressure onto people who are already struggling.