• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

U.S. inflation hit a new 40-year high last month of 8.6 percent

June 12, 2022
in Finance
0
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter



America’s rampant inflation is imposing severe pressures on families, forcing them to pay much more for food, gas and rent and reducing their ability to afford discretionary items, from haircuts to electronics. Lower-income and Black and Hispanic Americans, in particular, are struggling because, on average, a larger proportion of their income is consumed by necessities.

Economists do expect inflation to ease this year, though not by very much. Some analysts have forecast that the inflation gauge the government reported Friday — the consumer price index — may drop below 7 percent by year’s end. In March, the year-over-year CPI reached 8.5 percent, the highest such rate since 1982.

High inflation has also forced the Federal Reserve into what will likely be the fastest series of interest rate hikes in three decades. By raising borrowing costs aggressively, the Fed hopes to cool spending and growth enough to curb inflation without tipping the economy into a recession. For the central bank, it will be a difficult balancing act.

Surveys show that Americans see high inflation as the nation’s top problem, and most disapprove of President Joe Biden’s handling of the economy. Congressional Republicans are hammering Democrats on the issue in the run-up to midterm elections this fall.

Inflation has remained high even as the sources of rising prices have shifted. Initially, robust demand for goods from Americans who were stuck at home for months after Covid hit caused shortages and supply chain snarls and drove up prices for cars, furniture and appliances.

Now, as Americans resume spending on services, including travel, entertainment and dining out, the costs of airline tickets, hotel rooms and restaurant meals have soared. Russia’s invasion of Ukraine has further accelerated the prices of oil and natural gas. And with China easing strict Covid lockdowns in Shanghai and elsewhere, more of its citizens are driving, thereby sending oil prices up even further.

Goods prices are expected to fall in the coming months. Many large retailers, including Target, Walmart and Macy’s, have reported that they’re now stuck with too much of the patio furniture, electronics and other goods that they ordered when those items were in heavier demand and will have to discount them.

Even so, rising gas prices are eroding the finances of millions of Americans. Prices at the pump are averaging nearly $5 a gallon nationally and edging closer to the inflation-adjusted record of about $5.40 reached in 2008.

Research by the Bank of America Institute, which uses anonymous data from millions of their customers’ credit and debit card accounts, shows spending on gas eating up a larger share of consumers’ budgets and crowding out their ability to buy other items.

For lower-income households — defined as those with incomes below $50,000 — spending on gas reached nearly 10 percent of all spending on credit and debit cards in the last week of May, the institute said in a report this week. That’s up from about 7.5 percent in February, a steep increase in such a short period.

Spending by all the bank’s customers on long-lasting goods, like furniture, electronics and home improvement, has plunged from a year ago, the institute found. But their spending on plane tickets, hotels and entertainment has continued to rise.

Economists have pointed to that shift in spending from goods to services as a trend that should help lower inflation by year’s end. But with wages rising steadily for many workers, prices are rising in services as well.

Previous Post

‘Forza Motorsport’ gets a release date, new gameplay footage

Next Post

Senators reach bipartisan framework on gun legislation

Related Posts

Prosecutor Calls for Assault Weapons Ban After Highland Park Shooting
Finance

Prosecutor Calls for Assault Weapons Ban After Highland Park Shooting

Loading Something is loading. Lake...

Read more
Hyundai Motor’s union in S. Korea votes to authorize strike
Finance

Hyundai Motor’s union in S. Korea votes to authorize strike

SEOUL — Hyundai Motor Co's...

Read more
Long Position vs. Short Position: Key Differences
Finance

Long Position vs. Short Position: Key Differences

Long Position vs. Short Position:...

Read more
Jan. 6 Live: Trump Demanded to Be Taken to Capitol on January 6: Secret Service Sources
Finance

Jan. 6 Live: Trump Demanded to Be Taken to Capitol on January 6: Secret Service Sources

Teasing new witnesses, Rep. Adam...

Read more
Finance

Growing a Finance Brand Through Social Media

With the rise of social...

Read more
Load More
Next Post

Senators reach bipartisan framework on gun legislation

  • Trending
  • Comments
  • Latest
Flight Attendant Escorts Abandoned Senior Dog Cross-Country To His New Forever Family

Flight Attendant Escorts Abandoned Senior Dog Cross-Country To His New Forever Family

How old is Simon Cowell’s son Eric and who is his mother?

How old is Simon Cowell’s son Eric and who is his mother?

Six times actors really romped in sex scenes that make 365 DNI look tame

Six times actors really romped in sex scenes that make 365 DNI look tame

Horror as goat gives birth to ‘humanoid kid’ with baby-like face

Get set to join the jet set: How ordinary mortals can cash in on the action in flashy Mykonos

Get set to join the jet set: How ordinary mortals can cash in on the action in flashy Mykonos

25 Ways to Stop Spending Money and Save for Retirement

25 Ways to Stop Spending Money and Save for Retirement

Horizon Forbidden West Patch 1.17 Adds 120Hz, Variable Refresh Rate Support And New “Balanced” Graphics Mode

Horizon Forbidden West Patch 1.17 Adds 120Hz, Variable Refresh Rate Support And New “Balanced” Graphics Mode

White Sox’ independence from Twins’ rule is on the line starting Monday

White Sox’ independence from Twins’ rule is on the line starting Monday

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Get set to join the jet set: How ordinary mortals can cash in on the action in flashy Mykonos

Get set to join the jet set: How ordinary mortals can cash in on the action in flashy Mykonos

25 Ways to Stop Spending Money and Save for Retirement

25 Ways to Stop Spending Money and Save for Retirement

Get set to join the jet set: How ordinary mortals can cash in on the action in flashy Mykonos

Get set to join the jet set: How ordinary mortals can cash in on the action in flashy Mykonos

25 Ways to Stop Spending Money and Save for Retirement

25 Ways to Stop Spending Money and Save for Retirement

Horizon Forbidden West Patch 1.17 Adds 120Hz, Variable Refresh Rate Support And New “Balanced” Graphics Mode

Horizon Forbidden West Patch 1.17 Adds 120Hz, Variable Refresh Rate Support And New “Balanced” Graphics Mode

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....