Annual inflation cooled in January for the seventh month in a row. But price increases accelerated between December and January, fueled by rising shelter, food and gasoline prices.
Retirees and others who rely on Social Security will see a large boost in benefits next year, with the average benefit rising by $141 per month, as inflation stays above 8%.
Inflation eased slightly in August thanks to falling gasoline prices, but the cost of many essentials continues to climb, including soaring power bills that are straining family budgets.
Falling gasoline prices put a dent in the July inflation rate, which fell to 8.5% from 9.1% in June. But other costs such as housing continue to climb, putting a strain on many family budgets.
Forecasters say inflation likely hit a new, four-decade high last month, fueled in part by record high gasoline prices. Gas prices have since fallen, but overall inflation is still elevated.
Gas prices surged to a national record, not adjusted for inflation, surpassing the previous milestone hit around two months ago. It comes just ahead of the key summer driving season.
Inflation in March was the highest since December of 1981, with prices up 8.5% from a year ago. Rising prices are especially hard on low-income people, who spend more of their money on necessities.
Soaring gasoline prices have fueled increased demand for electric cars, hybrids and smaller gasoline-powered vehicles. But shoppers may not find much to choose from.
The prospect that the U.S. and its allies could impose new sanctions on Russian oil pushed energy prices sharply higher. The average price of gasoline in the U.S. hit $4.06 per gallon.
Hurricane Ida came ashore in Louisiana as a Category 4 hurricane, making it one of the most powerful in the region’s history. While the storm made landfall west of Georgia, it could have an impact at the gasoline pump here.
A surge in prices of used cars was a major driver of inflation again in June, but there are some signs those price hikes may be shifting into reverse.
Americans continue to say they approve of how the president is handling the coronavirus pandemic, but he may be running into speed bumps because of inflation and other issues.