It is becoming increasingly difficult for everyday Americans to cope with rising inflation, especially as rising prices hit where it hurts the most - food, gas, petrol, and housing.
On Wednesday, The Labor Department announced that overall inflation hit 5.4 percent compared to last year’s September.
Federal Reserve’s easy money policies, chaos in the supply chain and labor shortages are all factors that have contributed to price increases, and if this trend continues at the current rate, the purchasing power of the dollar will be cut down in half within 13 years!
In real-life terms, this means that what you can buy today for $ 20, in 13 years, 2034 to be exact, would be enough to pay for goods worth $10!
Pay more - get less
Jerome Powell, the chairman of the Federal Reserve, continues to reassure Americans that rising inflation is only temporary.
However, more and more Americans are seeing its effects on their supermarket bills, travel arrangements, and holiday shopping plans.
Fadia Chamoun of Lexington, Massachusetts told WBZ tv that prices have skyrocketed.
Groceries that used to cost a dollar now cost three dollars, and data released on Wednesday support her statements.
According to published data, the average price of raw beefsteak increased by 22% and eggs by 13%!
Meat prices also rose, with pork prices rising 12.7 percent, bacon 19.3 percent, and chicken and fish more than 7 percent!
Prices of fresh fruits and vegetables rose 3.3 percent, and bakery products and grains rose 2.7 percent.
Overall, the price of groceries increased by 4.5 percent compared to 2020.
Doesn’t look good
What also worries customers, especially as the Christmas holidays approach, is the rise in prices of clothing, furniture, and household appliances, which are most often bought as Christmas gifts.
Thus, kitchen appliances, dining room and living room furniture saw an increase of 13.7 percent, bedroom furniture by 8.8 percent, and washing machines by 19% compared to last year.
Jewelry, everyone’s favorite gift, rose 8.1 percent.
It doesn’t get any better for the automotive industry.
Motor vehicle prices are significantly higher than last year. The price of a new car rose by 8.8 percent and those of a used car by 24 percent.
When it comes to energy sources, the price of gas in September was 42 percent higher than last year, and the prices of other energy sources rose by 24 percent.
Compared to apartment rental prices, they increased by 2.4 percent compared to last year.
Some of the reasons for this surge in inflation are certainly the closures of factories in Asia due to the coronavirus pandemic, which has resulted in a mess in port operations in the US.
Ships with containers of goods remained anchored at sea, and companies could no longer pay for goods that did not arrive.
The lack of truck drivers and warehouse workers should also be mentioned, which is why shelves across the country are gaping empty.
An agreement was reached Wednesday between President Biden and leaders and unions from FedEx, UPS, Walmart, and others to expand operations to the port of Los Angeles to facilitate the supply chain ahead of the upcoming holidays.
The White House announced the implementation of the deal would increase production by more than 3,500 shipping containers on a weekly basis.
Fed Chairman Powell and the White House said they believe the increased inflation will prove temporary because inflation is a consequence of a shortage of supply.