Inflation has risen since the year started, forcing many to reconsider spending on stimulus check measures. Some Americans had no choice but to reduce dramatically to meet basic needs like food and gas. Others have had to rely and increase their credit card debt to shore up their savings and control their spending.
Although inflation continued to be a major concern for months, Congress has yet to come up with another stimulus package. In reality, the only relief Americans can expect this year’s summer is a government stimulus package. However, many states have yet to implement it.
Fortunately, inflation peaked in June and then cooled slightly in July. So, between the slight cooling and government incentives such as stimulus checks, several Americans have been able to get a fair amount of help.
Stimulus Check Effect? The Inflation Rate Is Lower Than Expected.
The consumer price index (CPI), a measure of ups and downs in the prices of services and goods, rose 9.1 percent from a year ago in June. In July, Economists had expected it to fall slightly to 8.7%. However, they were pleasantly surprised to see the CPI rise to just 8.5%.
What is clear is that the 8.5% year-on-year increase in consumer goods costs is still a staggering figure. However, in comparison to the numbers in June, it doesn’t look so bad. The main reason behind the CPI not rising similar to July was that gasoline prices finally fell. This has undoubtedly been a tremendous help to Americans in need of money.
Meanwhile, many states have so much budget to share that they are sending out stimulus checks during the summer. If the cost of living continues to fall, those receiving government incentives will find themselves in a comparatively stronger fiscal position during the fall.
The Fed has consistently raised interest rates to slow inflation and give consumers peace of mind. However, many kinds of loans have become more expensive as a result. That’s not exactly something good for consumers whose reliance has been on credit cards buy to fuel for their cars as well as acquire their daily meals.