Inflation rate in the United States has hit a 30-year high
SAN DIEGO (KUSI) – The rate of inflation in the U.S. rose again in July and drove the increase over the past year to a 30-year high, pointing to new problems for businesses and consumers as the economy recovers from the pandemic.
Consumers who were lucky enough to keep their jobs, are unlikely to have gotten a raise over the last year, so the inflation spike can essentially be seen as a wage decrease. Some people even calling this a “tax” on Americans, low income earners being the hardest hit.
The Personal Consumption Expenditure Price Index rose 0.4% in August, according to the federal government. This is the fifth big increase in a row.
Some companies are trying to avoid raising taxes, and are instead selling smaller quantities of their product.
The Biden Administration has shrugged off concerns over inflation recently, saying it’s only meat and produce. But, those are two essential products to American consumers.
Furthermore, the Democrats continue to introduce massive spending plans as a way to curb inflation, but it doesn’t seem to be working.
KUSI Contributor Sully Sullivan explained why inflation rates are spiking on Good Morning San Diego.