(RightIsRight.co) – So many Americans felt a squeeze on their pocketbooks during the coronavirus pandemic. Initially, much of that came from job loss or the newfound need for childcare after being forced to work from home. However, as the pandemic dragged on into 2021, inflation rose and has now hit a 29-year high, limiting just how far paychecks can go.
On Tuesday, July 13, the Department of Labor released its latest report on our economy and its recovery from COVID-19. It highlighted how the consumer price index rose 5.4% from the previous year, the largest leap in 13 years. While some workers have received higher wages in the past few months, any difference in their paychecks has been wiped out by highly inflated consumer prices, especially seen in the transportation and food sectors.
The White House’s Council of Economic Advisors broke down more of the data on Twitter:
Inflation as measured by CPI increased at a 5.4% rate year-over-year last month and 0.9% month-over-month. Core inflation—without food/energy—rose 4.5% year-over-year and 0.9% month-over-month. A large part of the increase is due to cars and pandemic-affected services. 1/ pic.twitter.com/REK1IDKRqn
— Council of Economic Advisers (@WhiteHouseCEA) July 13, 2021
Many economists have raised concern about the “overheated” economy that’s caused by numerous stimulus packages and ongoing boosted unemployment benefits. While the amount of inflation that has occurred is undeniable, it’s crucial to note that inflation rates are still calculated off of pandemic levels, making them slightly inflated.
After this month, rates will be based on pre-pandemic levels and will likely level off somewhat. While it’s important to keep these numbers in context, this news doesn’t relieve the squeeze American’s are feeling on their budgets all across our nation.
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