In June, the U.S. Inflation hit another 40 years of new highs in 40 years

Jimu Journalist Song Qingying

Intern Zhao Wenbo

According to the Associated Press reported on July 13, while the prices of demand for gasoline, food and other demand soaring, the price of housing rents, automobiles, and tourism was also rising. Inflation in the United States seemed to reach a new high in June in June.

U.S. Oil Price (Picture Source: Associated Press)

Government reports show that consumer prices in June increased by 8.8%over the same period last year, which will be the largest annual increase since December 1981.

According to the latest data statistics, the price of gasoline in July has dropped from 5 US dollars per gallon in mid -June to an average of $ 4.66, but this number is still much higher than one year ago. In addition to the price of food and energy with high volatility, the prices of other commodities rose 0.6%for the third consecutive month in June, a year -on -year increase of 5.7%.

Such a large price increase has led to the surge in the cost of many necessities, which has seriously affected the living expenses of most families. The situation of low -income black and Spanish families in the United States is worse, and gasoline and food projects account for a greater proportion of their daily expenses.

Over the past year, as the epidemic has improved, the US government has stimulated the economy to increase demand for purchasing, resulting in tight supply chain, leading to soaring prices. With the recovery of the tourism industry and entertainment industry, the prices of hotels, cars, housing rents are also rising.

The rise in prices has caused consumers to lack confidence in the economy, which leads to Biden's support rate fall straight, which in turn has brought major political risks to the Democratic Party. According to a public opinion survey, 40%of the American adults said that response to inflation should be the primary task of the Bayeng government this year. In December last year, this proportion was only 14%.

Continuous inflation makes the Fed feel very disturbed. Last month, the Fed announced that the 0.75 percentage interest rate hike strategy was the highest in the past three decades. At present, the interest rate is 1.5 to 1.75 percentage points.

The Fed is likely to announce a sharp interest rate hike again two weeks later, thereby increasing interest rates, reducing consumer and corporate expenditures, and slowing inflation. High -level inflation may promote the Federal Reserve to greatly increase its short -term interest rate again.

Some economists are worried that the Federal Reserve is anxious to suppress inflation may cause too fast interest rates and trigger future economic recessions.

The Fed expects that inflation may slow down in the second half of this year, but it is not well known at present.

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