Americans continue to pay high prices for goods despite no signs of a slowing.
The Consumer Price Index (CPI) rose to 9.1 percent in June, with housing, gasoline, and food contributing the most to the price increase.
Inflation rose to 8.6 percent for May, according to data released last month by the US Bureau of Labor Statistics.
In April, inflation dropped to 8.3 percent.
At the grocery store and the gas station, people are still required to pay exorbitant prices.
Inflation is usual and expected in a sound economy.
Concern arises when inflation begins to outpace wage growth, as it is now doing in the US.
Since it costs more to purchase goods and services when inflation rises, your money has less purchasing power.
The economic downturn is partially due to the virus and the lockdowns, which began in 2020.
The Russian invasion of Ukraine is another aspect.
What is the current inflation rate?
According to data released by the US Bureau of Labor Statistics on July 13, the country’s inflation rate rose to 9.1 percent in June 2022.
Over the past year, the price of housing has increased by 5.6 percent.
During the year, there has been a 10.4% increase in food costs.
The head of petroleum at GasBuddy predicted that the first half of this year will see the highest gas prices, and that prediction has held true.
As of July 13, the average national price for a gallon of gas was $4.631, down 38 cents from one month earlier, according to AAA.
Simply put, inflation is more money hunting fewer products.
The price increases affect goods and services.
Many reasons can attribute to this including labor shortages, wage increases, raw material cost hikes, even government spending.
The American economy is taking a hit with increased pricing across the board including basic necessities like gasoline, food and clothing.
Here are ways to protect your finances from inflation.