Inflation Will It Ever End At The Pump

May saw the highest inflation in four decades, raising prices for everything. Americans are feeling the pain. 

Last month, the consumer price index rose 8.6%, faster than 8.3% in April. Some reports say the latest inflation figure will be the highest since December 1981 as the Federal Reserve is under increasing pressure to raise interest rates aggressively. 

The price rose by 1% from April to May as compared to March to April. Behind that surge were much higher prices for food, energy, rent, airline tickets, and new and used cars. 

There was also an increase in “core” inflation, a measure of inflation excluding volatile food and energy prices, which was also a result of widespread price increases.

For a second straight month, core prices rose sharply by 0.6%. They are now 6% above the year before. Inflation is making life much more difficult for Americans, as they pay much more for food, gas, and rent and, as a result, have fewer options for discretionary purchases, such as haircuts and electronics.

Higher proportions of income are consumed by necessities among lower-income, Black, and Hispanic Americans. A few signs have emerged in recent weeks suggesting inflation is easing, especially for materials caught up in supply chain snarls and shortages last year.

After falling for three straight months, used car prices increased by 1.8% in May. The shortage of semiconductors has also increased the price of new cars. The price of clothing has also risen significantly. Following Friday’s inflation report, the Federal Reserve could raise interest rates more quickly than at any time since the 1970s.

To curb inflation without causing a recession, the Federal Reserve raises borrowing costs sharply to cool spending and growth. A difficult balancing act awaits the central bank.

From recent reports and studying up on all the material I could I found that there is pattern that tends to develop as world affairs hit an all-time low. The Stock Market, 9-11 and more recently The War in the Ukraine, This pattern results in steep gas prices, food shortages and everyday Americans going with out.

What could Americans do? What could we do in place of relocating funds from food to rent? Is there an end in sight? Will the current administration step up and provide relief? With all the questions and uncertainty one thing is for sure. Americans have survived worse, if Covid couldn’t wipe us out some little recession won’t either. We have been through to much together, to quit now.

Citations

Board of governors of the Federal Reserve System. Federal Reserve Board – Home. (n.d.). Retrieved June 10, 2022, from https://www.federalreserve.gov/ 

Wikimedia Foundation. (2022, June 10). Federal Reserve. Wikipedia. Retrieved June 10, 2022, from https://en.wikipedia.org/wiki/Federal_Reserve