According to the Dow Jones estimate, economists predicted that the U.S inflation rate would not move and stay at a rate of 8.8%. However, in June, inflation rose to 9.1%, and there’s no telling how high it will continue to rise in the next few months.
In particular, costs rose for basic necessities like gas, groceries, rent, and dental care. Setting aside the costs for food and gas, the core CPI rate rose to 5.9%, while the previous estimate was 5.7%. Some companies adjusted their employee’s wages based on inflation; however, the hourly wages decreased by 1% instead of increasing.
This is reportedly the fastest pace for inflation growth since November 1981. Domestic goods, services, and housing are also skyrocketing in cost. If inflation continues to rise for these categories, the Federal Reserve may have to take aggressive matters.
Airfare slightly decreased but is still up 34.1% from a year ago. The meat, poultry, fish, and eggs categories are the most concerning, having dropped 0.4% in June from May. The full impact of inflation has yet to be seen.
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