Inflation in the US rose in May and reached its highest level in 41 years

Washington. – Prices of gasoline, food and other products in the United States rose significantly in May, and push inflation to a new level in 41 years -8.6% year on year, without giving American households a rest in the face price increase.

The Labor Department said Friday that consumer prices rose 8.6% last month from the previous 12 months, faster than the 8.3% increase in April on an annual basis.

month to month, Prices increased by 1% from April to May, Sharp increase from 0.3% rise in March to April. Gasoline prices are much higher They are responsible for most of this increase.

Rampant inflation in the United States is putting severe pressure on families, forcing them to pay more for food, fuel and rent, and limiting their ability to purchase discretionary items from haircuts to electronics.

Americans have to deal with inflation in a way they haven’t done in four decadesJustin Sullivan – GETTY IMAGES NORTH AMERICA

Economists expect inflation to ease this year, though not by much. Some analysts have predicted that the inflation rate announced by the government on Friday – the consumer price index – could fall below 7% by the end of the year.

High inflation has also pushed the Federal Reserve to what is likely to be Fastest series of interest rate increases in three decades. By aggressively raising borrowing costs, the Fed hopes to cool spending and grow enough Curb inflation without pushing the economy into recession. For the central bank, it will be difficult to balance.

Surveys show it Americans see high inflation as the country’s main problem, Most do not agree with the president’s handling of the economy Joe Biden. Republicans in Congress are criticizing Democrats on this issue just before the fall midterm elections.

Inflation remained high even when The sources of price increases have changed. Initially, strong demand for goods from Americans who had been stuck at home for months due to the Covid-19 pandemic led to shortages and complications in the supply chain and Raising the prices of cars, furniture and appliances.

Now, as Americans return to spending on services, including travel, entertainment and dining, The costs of airline tickets, hotel rooms and restaurant meals have skyrocketed.

The Russian invasion of Ukraine accelerated oil and natural gas prices. And as China eases its strict COVID-19 lockdown in Shanghai and elsewhere, more citizens are driving, driving gas prices higher.

Gasoline increases were the most notable in May
Gasoline increases were the most notable in MayGetty Images – Getty Images North America

Commodity prices are expected to fall in the coming months. Several large retailers, including Target, Walmart and Macy’s, have reported that they now have a lot of patio furniture, electronics and other products they ordered when these items were in high demand and will have to tag them.

However, rising gas prices are eroding the finances of millions of Americans. Average prices at the pump are about $5 a gallon Nationally it is closer to the inflation-adjusted index of about $5.40 reached in 2008.

AP . Agency

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