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Major inflation gauges tracked by the federal government remain high at 6.3%

Article author:

The Associated Press

Associated Press

Paul Wiseman

FILE-- Gas is advertised for more than $6 per gallon at a gas station in Sacramento, Calif., Friday, May 27, 2022. Many California households could soon get help to pay for the state's record-high gas prices. Most California households would get up to $1,050 from the government to help them put the nation's most expensive gasoline in their cars, part of a relief package in the state's record-setting operating budget that lawmakers are scheduled to approve later this week.
File-Gas is advertised Over $ 6 per gallon at a gas station in Sacramento, California, Friday, May 27, 2022. Many California households were able to quickly help pay for the state's record high gas prices. Most California households are from the government to help get the most expensive petrol in the United States into the car, which is part of the state's record operating budget bailout package that MPs will approve later this week. You will get up to $ 1,050.Photo courtesy of Rich Pedroncelli/Associated Press

Washington (AP) —A closely related indicator of inflation What the Federal Reserve tracked was up 6.3% year-on-year in May, unchanged from April levels.

Thursday's report from the Commerce Department shows that painfully high inflation puts pressure on American families and causes special harm to low-income families and people of color. Provided the latest evidence that you are.

According to the government's report, private consumption was sluggish at a rate of 0.2% from April to May. In the face of high inflation, consumer spending is beginning to weaken. However, it is still driving inflation itself, especially as demand for services ranging from airline tickets and hotel rooms to restaurant meals to new and used cars increases.

Every month, prices rose 0.6% from April to May and 0.2% from March to April.

Chronic high inflation poses a major threat to the economy as the midterm elections approach and poses a political danger to President Joe Biden and the Democratic Party. The Associated Press-A new study by the NORC Public Relations Center states that 79% of adults in the United States have a poor economy. Inflation is above the healthy 3.6% unemployment rate, especially as the focus of Americans suffering from high gasoline and food prices.

In response, the Federal Reserve has launched a series of aggressive rate hikes aimed at slowing growth by increasing borrowing, but causing a recession. There are also risks. Two weeks ago, the Fed raised key interest rates by three-quarters. This is the largest rate hike in nearly 30 years and suggests that there will be even more significant rate hikes in the future.

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