A man shopping in a supermarket on a budget. He’s looking for low prices because of inflation, standing in front of a row of freezers and looking at his cell phone. He lives in the North East of England.
(new nation) — The new inflation rate shows that the amount Americans pay for goods and services has increased by 4.7% over the past year, and more than 0.5% in the last month alone.
Moody’s estimates that the average American family spends about $371 more a month due to inflationary pressures.
There were more of them than expected. Concerns reignite that inflation will not fall as much as hoped, and the Federal Reserve may be forced to raise rates at least three more times in the coming months. there is.
This could lead to higher borrowing costs for individuals and businesses, and higher interest rates on mortgages and auto loans.
The White House has been trying to highlight how inflation is going down, but the president cautioned in a statement today: strong position. ”
The more the Federal Reserve is forced to raise interest rates to combat inflation, the more likely it is to cool the economy and hurt US jobs.
For example, the unemployment rate is currently at 3.4%, but the Fed expects it to rise to around 4.5% by the end of the year.
Government data released earlier this month showed that the cost of transportation to get to work to pay for basic necessities like housing and food has all increased significantly.
Transportation costs are up about 14.5%, housing is up nearly 8%, and energy costs are approaching 9% overall. Americans have more than 11% more food in their refrigerators and pantries. Nor are they taking breaks at restaurants. These food costs have only increased by more than 8%.
Other standout numbers include auto insurance, up about 15%, and electricity, up nearly 12%. Coffee and milk are about the same range and pets are not tolerated either. Pet food prices are up about 15%.