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US inflation hit a new 40-year high at 9.1 percent in June

The continued rise in prices underscores the brutal impact of inflation on many families, with the cost of essentials in particular rising much faster than average incomes. Low-income and Black and Hispanic Americans are particularly hard hit, with a disproportionate share of their income going to basic necessities like housing, transportation and food.

Some economists have expressed hope that inflation may be at or near a near-term peak. Gas prices, for example, fell from a staggering $5 a gallon in mid-June to a national average of $4.66 on Tuesday — still far higher than a year ago, but a drop that could help lower inflation for July and possibly too slow down August.

Also, shipping costs and raw material prices are starting to decrease. Wage increases have slowed. And polls show that Americans’ long-term inflation expectations have eased — a trend that often suggests more modest inflation over time.

But for now, the inexorable rise in inflation has caused consumer confidence in the economy to plummet, crashed President Joe Biden’s approval ratings and posed a major political threat to Democrats in November’s congressional elections. Forty percent of adults said in a June AP-NORC poll that they thought tackling inflation should be one of the government’s top priorities this year, versus just 14 percent who said so in December.

US inflation hit a new 40-year high at 9.1 percent in June

Source link US inflation hit a new 40-year high at 9.1 percent in June

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