Prices in the United States are rising at the fastest rate in 40 years

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Prices in the United States are rising at the fastest rate in 40 years
14 Jul 2022
6 min read

News Synopsis

According to the most recent data, prices in the United States are rising at their fastest rate in more than 40 years, owing to high gasoline and food costs. According to the Labor Department, inflation, or the rate at which prices rise, reached 9.1 percent in the year to June and increased by 1.3 percent in May alone.

Last month, gasoline prices in the United States reached all-time highs, averaging more than $5 per gallon. It has led to speculation that the US Federal Reserve will raise interest rates again later this month. According to the data, the US inflation rate has risen from 8.6 percent in May to its highest level since November 1981.

There was hope that shifting spending from goods to services would help to cool inflation, but high competition for workers has resulted in higher wages, fueling further price increases. Prices in the United States have been rising since late last year as a result of Covid's supply chain disruption and higher food prices caused by severe weather. Commodity prices have risen globally as a result of the conflict in Ukraine.

Some economists believe President Biden's Covid spending programmes have exacerbated price increases. It spent $5 trillion (£4.1 trillion) on stimulus to protect households and businesses from the economic shock of the pandemic.