Article author:
Associated Press
Paul Wiseman
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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