USA Records Highest Inflation in Four Decades

Inflation in the USA has reached the highest level in the last 40 years. Consumer prices have seen a jump of 8.6% in comparison to 12 months. This figure is at the highest level since 1981. The country's Labor Department said inflation in the United States hit a 40-year high in May and rose 8.6%. The cost of food, gas and other necessities increased by 1% from April to May. Whereas from March to April it had increased by 0.3%. Along with this, gas prices have been skyrocketing in the country for a few months now.

Amid the covid-19 pandemic and prior to the Russia-Ukraine War, inflation was a problem faced by most the countries across the world. Due to Corona, governments around the world had put a lot of money in the market to speed up the economy. But now this problem has become more serious and the US Federal Reserve has started raising interest rates to curb rising inflation.

On the other hand, as people in the US begin to spend on services including travel, entertainment, and dining out, the cost of airline tickets, hotel rooms, and restaurant meals has soared. Russia's invasion of Ukraine has pushed up oil and natural gas prices further.