Price increases in the United States dropped in April, but the annual inflation rate stayed above a 40-year record high, leaving many Americans struggling to make ends meet basics like as food, shelter, and gasoline.
According to the most recent consumer price index (CPI) numbers, prices rose by a monthly growth rate of 0.3 percent in April, down from 1.2 percent in March, the first dip since August 2021.
However, it is too early to tell if inflation has peaked. The annual rate of inflation in April was 8.3 percent, down from 8.5 percent in March, but remained at a level not seen since the 1980s. The CPI’s food index jumped 9.4 percent year on year, the highest 12-month gain since April 1981. The core-price index, which excludes volatile sectors like as food and energy, rose 0.6 percent month on month, up from 0.3 percent in March.
The statistics come as the Federal Reserve prepares to raise interest rates dramatically in an effort to bring prices back under control. The rapidity of rate hikes, and worries that they may cause a recession, have frightened investors and sent global markets tumbling.
Increasing demand and a scarcity of supply as a result of the epidemic have resulted in price increases across a wide range of products and services. Airfares have increased by 40% in the previous three months. A thriving property market has made housing expensive for many Americans, particularly people of color, and 49 percent of individuals recently told Pew Research that affordable housing is a significant issue in their town. Read more: Price of Commodities Record High.
Kroszner claimed that global factors such as the Ukraine conflict and China’s economic troubles have combined with increasing interest rates to give a one-two blow to the US economy. He believes the likelihood of the United States experiencing a recession has increased, and that the housing and labor sectors may be the next to suffer.
On Tuesday, Biden stated that his government was doing all possible to combat inflation. I would like every American to know that I take inflation extremely seriously, he said in White House comments. It’s my number one domestic priority.