From having to put dinner on the table, gas in the car and a roof over the head of the family, making ends meet is getting harder.
The consumer price index in May rose 8.6% year on year, higher than many economists had expected. This is also a figure not seen since 1981.
The Consumer Price Index, or CPI, is a measure of the average change in the price of consumer goods by the U.S. Department of Labor over time.
Inflation is hitting homes and it hurts
“It was $ 106, and look what I got,” said Denise Salinas, loading several packets of groceries into her trunk.
Last week, she said she spent more than $ 300 on food, and that doesn’t even include meat.
Product prices are up 11.9% from last year, according to the latest CPI. This includes meat, dairy, fruits and vegetables and even dog food.
“I can’t afford anything else,” said another buyer. He said that what hurts him the most is the price of gasoline.
Gasoline prices have risen by a staggering 48.7% over last year, data show.
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But it’s not just food and gasoline. Excluding them from the equation, the core price index still rose 6%.
Housing, including rent, will rise in price by 5.5%.
Trying to buy a car? Prices for new cars increased by 12.6%, for used cars – by 16.1%.
Clothing will rise in price by 5%, and medical care – by 4%.
Many wages have risen, especially in the low-paid sectors. But for many people, wages are not keeping up with rising inflation.
“I really hope no one is paid $ 7.25 that day,” said Joshua Salinas, referring to the federal minimum wage.
What can consumers expect next?
“I think the Federal Reserve will raise interest rates faster and much more than previously thought,” said David McPherson, Ph.D., a professor of economics at Trinity University.
As the Fed tries to gradually reduce inflation, he says consumers can expect a tough landing.
“I think the chances of avoiding a recession should be low,” he said.
On Friday, President Joe Biden vowed to continue fighting inflation while visiting the Port of Los Angeles, America’s busiest port and a place the White House said last October that would be key to lowering price pressures.
“My administration will continue to do its utmost to lower prices for the American people,” the president said after a clearly bleak new consumer price report.
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