Consumers are paying higher prices for goods and services in comparison to those before one month. And even worse, in contrast to the previous year, we are paying significantly higher prices, and Labor Department data confirmed it.
The Labor Department stated that the consumer price index, which is the crucial inflation gauge measuring how much Americans pay for goods and services, has increased by 0.4% in September. From year to year, the prices increase by 5.4%. Some experts claim that it’s the highest yearly increase since January 1991.
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On Wednesday, the agency released a report which breaks down how much the prices have increased for specific goods like gas, food, electricity, and cars.
Gas: 42.1 percent
Meats, poultry, fish, and eggs: 10.5 percent
Propane, kerosene, and firewood: 27.6 percent
Fuel oil: 42.6 percent
Electricity: 5.2 percent
Peanut butter: 6.2 percent
Coffee: 4.0 percent
Bacon and similar products: 19.3 percent
Uncooked beef steaks: 22.1 percent
Furniture: 11.2 percent
Used cars and trucks: 24.4 percent
New cars and trucks: 8.4 percent
Rental cars: 42.9 percent
Footwear: 6.5 percent
Motor vehicle maintenance and repair: 4.0 percent
Postage and delivery services: 3.2 percent
Haircuts and other personal care services: 5.0 percent
Sporting goods: 7.5 percent
Appliances: 7.1 percent
Restaurant prices: 4.7 percent
Rent. 2.9 percent
Some economists emphasized that the current inflation surge is transitory, and the prices will continue to rise. Labor Department data stated that wages increased by 4.6%, so inflation is outpacing wage growth.
Many analysts and experts say that a mix of factors is responsible for the inflation spike, such as supply chain disruptions and bottlenecks, energy shortages in the Asia-Pacific zone, and Europe. Also, let’s not forget the C-19 related concerns and vaccine mandates.
Queen’s College President and economist Mohamed El-Erian stated that he thinks inflation will be “more and more of an issue for markets” and that it will “separate winners and losers in a significant way.”
This Wednesday, the Biden administration shared a couple of statements and announcements, claiming that the WH will try to alleviate supply chain issues. They will ask the shipping companies like FedEx and UPS to try to find a solution and deal with bottlenecks. They requested the LA Post to work around the clock, seven days per week.
Furthermore, Republican lawmakers argued that the policies have contributed to the year-over-year inflation. The WH addressed gas shortages and price surges, and the press secretary Jen Psaki announced that Biden “has asked his economic team, as they do on any range of issues impacting the public, to continue to discuss what the options are that we can take to address these shortages.”
Shortly said, Psaki claimed that she’s “not in a position yet to outline additional steps we can take,” but there are certain steps that the Biden administration can take.