Inflation is rearing its ugly head, and consumers are feeling the pain.
First it was lumber. Then it was gasoline. And now, it’s pretty much everything.
The cost of consumer goods seems to be going nowhere but up, and that trend shows no signs of reversing anytime soon…
In May, consumer prices rose 5% year over year and incr
eased at their fastest pace since 2008, according to the Labor Department. And while economists expected a significant jump, that 5% is higher than the 4.7% they anticipated.
Contributing to this uptick is the cost of used cars and trucks, which increased 29.7% year over year. Meanwhile, gasoline prices are up 56.2% over the past year, part of an overall 28.5% increase in energy costs.
Surprisingly, food prices didn’t rise as much, despite the fact that many consumers are bemoaning paying more for groceries. Food costs jumped just 2.2% from the previous year.
Inflation is hurting jobless and lower-income households
The U.S. unemployment rate fell in May, and weekly jobless claims just hit a pandemic low of 376,000. On the other hand, a lot of people are still out of work and face barriers to getting a job, such as health concerns or a lack of childcare. Meanwhile, starting this weekend, 25 states are pulling the plug on boosted unemployment benefits ahead of schedule, stripping the jobless of the extra $300 a week they’ve been collecting on top of their regular state benefits.
With the costs of consumer goods rising..
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