Americans have watched prices for everything from diapers to gas go up over the past year. So far, they have kept reaching for their wallets. But what happens when they reach their breaking point? Here is the stimulus update on how consumers’ prices are increasing constantly. The pandemic and the supply chain crisis have pushed the cost of virtually everything higher. Food and cars are more expensive, as are transport and labor costs, making inflation the buzzword of the moment.
In February, consumer prices increased at a level not seen since the start of 1982. And odds are it won’t stop there. A month ago citizens were generally looking at the inflation that was primarily in areas where one was spending more because of the pandemic such as cars, housing, and home renovations said Frances Donald, global chief economist, and strategist at Manulife Investment Management. He also exclaimed that these were more optional types of inflation.
Stimulus Update Stated By The Labor Department Data
After a year of soaring costs, the Ukraine-Russia conflict is pushing prices for more essential categories, like food and energy creating a stimulus update. The price hikes Americans are likely to experience in the coming months will be much harder to get around said Donald. Citizens don’t get to see a lot of what economists call elasticity when it comes to demand for fuel and food they don’t have much choice.
The cost of cooking dinner and fuelling the car already shot up over the past year. Gasoline prices rose 38% in the 12 months that ended February, while prices for meats, poultry, fish, and eggs jumped 13% over the same period, according to Labor Department data. Now gas prices are ringing even further and people are struggling to keep up.
