U.S. Inflation

By: Logan Antio

Editor: Grace Pilkay

Senior Editor: Brianna Madison

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The United States is facing the highest 12-month jump in the consumer price index since 1990. US consumer prices increased by 6.2% in October. Economists are claiming that higher prices will most likely last until next year, if not longer. The prices of eggs have surged approximately 12%. Used cars 26%. Energy costs 4.8% from just September to October. And gasoline prices are 50% higher, as the national average for a gallon of gasoline is $3.42. A price that was last reached in September 2014, and is $1.31 more than last year. Not only has the CSI increased dramatically, but core inflation has risen 4.6% being the fastest gain since August 1991.

Following COVID-19 causing harm to the economy, too much government spending has also negatively impacted the situation. Including the 1.9 trillion dollar relief package along with the $1,400 stimulus checks. Not only was this a big factor, but the holdup on the global supply chain has caused products to cost more and have a higher demand. With these factors in play, businesses have had to pass high prices on to the consumers. The shortage of workers is also negatively affecting inflation and the economy overall.

According to Kathy Bostjancic, chief U.S. financial economist at Oxford Economics, “Things are going to get worse before they get better.” Consumer prices, as well as the overall inflation rate, will likely stay as is as long as companies struggle to keep up with the demand for services and products. It's said that if the Biden Administration closes a gas and oil pipeline running through Michigan, then energy bill prices will be much higher. Many factors can extremely affect inflation rates, which can include the number of workers, bottlenecks in the supply chain, and government spending. If problems such as these continue, inflation could last even longer than projected.