![]() Mary Jane Crouch, executive director of America's Second Harvest of Coastal Georgia, which works with a network of food banks, said 38% more food was distributed in August compared with July. Worsening food inflation is a particular strain on lower-income families, more of whom have had to turn to food banks and other aid as inflation has worsened. And egg prices surged 2.9% just in August from July and are up nearly 40% from a year ago. In the past year, they have soared 13.5% - the biggest 12-month increase since 1979.Ĭhicken prices have risen nearly 17% in the past year. But grocery prices have continued to rise rapidly, jumping 0.7% from July to August. ![]() Nationally, the average cost of a gallon of gas has dropped to $3.71, down from just above $5 in mid-June. He has instead highlighted his administration's recent legislative accomplishments, including a law enacted last month that's intended to reduce pharmaceutical prices and fight climate change. In his speeches, Biden has generally stopped referring to the impact of inflation on family budgets. That is welcome news for American families, with more work still to do." In a statement Tuesday, the president said, "Overall, prices have been essentially flat in our country these last two months. It may already have contributed to slightly higher public approval ratings for Biden. Many economists generally agree, though they say that snarled supply chains, sharp pay increases and Russia's invasion of Ukraine have also been key factors in the inflation surge.Īt the same time, the drop in gas prices - for consumers, perhaps the most visible barometer of inflation - could bolster Democrats' prospects in the midterm elections. They blame President Joe Biden's $1.9 trillion stimulus package passed last year for much of the increase. Republicans have sought to make inflation a central issue in the midterm congressional elections. It has deepened gloom about the economy despite strong job growth and low unemployment. Inflation is higher than many Americans have ever experienced, escalating families' grocery bills, rents and utility costs, among other expenses. "It raises the risk of higher interest rates and a hard landing for the economy." "This was a disappointing report," said Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives. That would make it even harder for the central bank to meet its goal of achieving a "soft landing," whereby it would tame inflation without causing a recession. ![]() Some economists now expect the Fed to raise its benchmark short-term rate, currently in a range of 2.25% to 2.5%, to 4.5% or higher by early next year. Chair Jerome Powell is expected to announce another big increase in the Fed's key rate next week, which will lead to higher costs for consumer and business loans.įurther aggressive Fed rate hikes could weaken growth so much as to push the economy into a downturn. Many investors are now fearful that the Fed will tighten credit even more vigorously in its drive to curb inflation. Stock prices plunged, with the S&P 500 index suffering its worst day June 2020 - a loss of more than 4% - and bond yields jumped on the worse-than-expected core figures. Economists tend to track core prices for a clearer read on where inflation is headed. The breadth of the price increases dashed hopes, at least for now, that core inflation would moderate. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |