Inflation in the United States reached its highest level in 40 yearsafter the prices of gasoline, food and other basic products increased in May.
Prices increased 1% from April to May, compared to 0.3% from March to April.
Why is the inflation presented in the US?
Most of the increase was due to gasoline.
“Virtually every sector has higher-than-normal inflation”
The general increase in prices was also recorded in the so-called Underlying inflation”, a measure that excludes volatile food and energy prices. In May, core prices increased 0.6% for the second consecutive month and 6% in a year.
Friday’s report highlighted fears that inflation will go far beyond rising energy prices stemming from clogged supply chains and the Russian invasion of Ukraine. And mounting pressure on the Fed to keep raising interest rates is driving up the cost of borrowing for businesses and consumers, raising the risk of recession.
“It’s gotten into every corner of the economy. That’s the most worrying thing, because it means it’s likely to persist,” said Ethan Harris, head of economic research at Bank of America.
What are the products most affected by inflation?
The prices of the Gasoline were up 4% in May and almost 50% in 12 months. The national average price hit $4.99 a gallon (3.5 liters) on Friday, according to the AAA automobile association.
Los groceries increased almost 12% last month from a year earlier, their biggest jump since 1979. Prices in the restaurants increased 7.4%, the biggest jump since November 1981, reflecting rising food and labor costs.
Los housing costs are also increasing. The official index that includes rents, hotel rates and a measure of what it costs to own a home increased 5.5% in the year, the biggest jump since 1991. Air fares increased almost 38%, the biggest increase since 1980.
Inflation puts serious pressure on families by forcing them to pay much more for groceries, gas, and rent, and reduce your purchasing power on non-basics, from haircuts to electronics. Low-income households, particularly Hispanics and the African-American population, are the hardest hit because they must spend a greater part of their income on basic necessities.
In March, the annual CPI was 8.5%, the highest since 1982.
High inflation has forced the Federal Reserve to implement the fastest series of interest rate hikes in 30 years. With it, the Fed hopes to cool spending and growth enough to curb inflation without triggering a recession.
Surveys show that for Americans, inflation is the number one problem and most He disapproves of President Joe Biden’s handling of the economy.