A recent report from the US Bureau of Labor Statistics shows that inflation within the US shot up to 9.1% over 12 months from June 2021 to June 2022. This is the highest inflation it has been at since 1981. Two significant increases over the last 12 months include gasoline, which rose 59.9%, and food at home, which rose 12.2%. This is no surprise to Americans as global events such as the supply chain and the war on Ukraine have affected the US and global economies.
What Can be Done?
With the Federal Reserve meeting later this month, expect rates to increase. Rates rose from 1% to 1.75% at the most recent meeting in June. This was the highest increase since 1994. Due to such high inflation, the Federal Reserve predicts the interest rate to keep increasing till 2023, which is predicted to be 3.80%. The increased rates are supposed to help the Federal Reserve and its goal of bringing inflation to 2%. While the rise of rates will hurt the American consumer short-term, hopefully, it will strengthen and stabilizes the US economy long-term.