If you’ve done any sort of shopping lately, you’ve likely noticed that the prices of a large number of goods and services have increased. When can we expect inflation to slow down? Here’s what experts are saying.
Let’s Talk about Inflation
The costs of many goods and services have been steadily increasing over the course of about 8 months. Finally, in the month of April, inflation slowed considerably. Inflation rose 0.3% from March to April which was the lowest jump in the last eight months. Costs have pushed annual consumer prices over 8% higher. It’s become increasingly expensive to feed your family, drive your vehicle and pay rent and increases in wages aren’t quite rising as quickly as inflation. With no clear end in sight, American’s are growing discouraged, desperate and frustrated.
Thoughts from the Biden Administration
What is causing this incredible surge of inflation? An article written for aljazeera.com states, “Biden blamed chronic supply chain snarls related to the swift economic rebound from the coronavirus pandemic, as well as Russia’s invasion of Ukraine, for igniting inflation. He said his administration will help ease price increases by shrinking the government’s budget deficit and by fostering competition in industries, like meatpacking, that are dominated by a few industry giants.” Although it’s difficult to admit, we are still seeing negative effects stemming from the Coronavirus. This issue has sort of shifted from a health pandemic to an economic crisis.
Another way the government is trying to combat inflation is by having the U.S. central bank to increase interest rates by half a percent. Additional hikes are set to be rolled out throughout the rest of the year. These increases will be the fastest series of interest rate hikes in over 30 years.
Lastly, President Biden suggested a possible solution in a recent speech. It involves the elimination of tariffs on China. This would reduce the costs of oversees goods coming into the U.S. Those savings would inevitably trickle down to consumers leading to a decrease in costs for good and services across the board.
The Biden Administration has made a commitment to combating high inflation. In fact, the President has stated that he will be making this a top domestic priority. But, how seriously are American’s taking these claims? According to a recent Reuters/Ipsos poll, only 44% of U.S. adults approve of the way Biden is handling the Presidency. Additionally, Americans are naming the economy as our country’s more pressing problem.
The conversation surrounding inflation has caused many other high profile issues to be put on the back burner. Namely, abortion rights have become secondary to worries over the economy. As midterm elections get underway, it seems as though many candidates will be focusing their platforms on economic reform and tackling inflation.
Inflation is a serious problem. Millions of Americans are struggling to make ends meet. With no clear end in sight, it’s difficult to say how long we can continue like this.