Inflation hits new high in 40 years | Mississippi Politics and Current Affairs

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Headline CPI now stands at 8.6% as consumer prices soar, causing trouble for Americans’ wallets.

After two years of economic devastation during the COVID-19 pandemic, billions of dollars doled out by Congress, and questionable economic decisions from the White House, financial hardship continues across the United States with a new rate of inflation high of 40 reported this morning.

The new Consumer Price Index (CPI) has increased by 8.6% since last year, which has impacted almost all markets with an increase in prices. The following sectors are on the rise:

  • Gas: +48.7%
  • Fuel oil: +106.7%
  • Meat, Poultry & Fish: +13.1%
  • Milk: +15.9%
  • Eggs: +32.3%
  • Coffee: +15.3%
  • Used cars: +16.1%
  • Air fares: +37.8%

In addition to the increase in CPI rates, real average hourly earnings are down -3%.

RELATED: NFIB announces small business expectations for better terms at 48-year low

“Recently we conducted an industry-specific survey regarding the challenges, we learned that the construction and manufacturing industries are particularly feeling the impact of inflationary pressures. Additionally, optimism in these industries also varies depending on how much inflation, staffing and supply chain disruptions affect them,” said Senior State Director for the NFIB in Mississippi, Dawn McVea.

Moreover, 32% of these companies consider inflation to be a persistent problem. This is the highest return since the fourth quarter of 1980.

As the Federal Reserve takes action by raising interest rates to offset inflation, the Biden administration published its plan to help lower rates on May 10.

The administration has largely blamed Vladmir Putin and congressional Republicans for slow efforts to deal with the economic disaster. The plan includes measures such as raising taxes on corporations and the wealthy, building more than one million more affordable homes through tax credits, and investing federal resources to create more competition in meat processing as well as more than $1 billion in relief for small businesses and agricultural workers affected by COVID-19.

In response to the Biden administration’s plan and the rising inflation reported today, Mississippi Senator Roger Wicker did not hold back his criticism of the President.

“President Biden recently painted a rosy picture of the US economy. Yet inflation hit a staggering 8.6% last month,” Wicker tweeted. “Americans are suffering and POTUS doesn’t seem to understand.


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