This is the least pandemic summer in two years, but inflation Celebration pulls.
why does it matter: Most Americans now get a taste of living in a high-inflation environment — and they don’t like it.
Prices are high almost in all areas For many of the things we love to do in the summer, including:
Regular gas prices average now $5 a gallon, according to AAA — and more in some parts of the country. Even if your salary keeps pace with inflation (and Not everyone has), sticker shock can be frustrating.
- “It’s unfortunate to spend $5 when you are used to spending $3,” said Carola Consis-Bender, professor of economics at Haverford College.
Eating out: For those who took a two-year break, there’s little to no Rip Van Winkle’s impact when it comes to restaurant dining.
- Menu prices are eye-catching, and there’s more shocker attached when the check arrives — restaurants add ‘service fees’ and charge extra, Wall Street Journal mentioned.
News leadership: The government’s CPI shows average prices have risen 8.6% over the past year – a level last seen in the 1970s, an era known in boring terms like stagflation and stagnation.
- “If you’re a millennial and all you know is 2% inflation, that’s really bad,” economist Richard Curtin told Axios earlier this year.
- From 1976 until recently, Curtin conducted the University of Michigan Consumer Survey – an influential indicator, which measures mood, which recently reached its lowest level since its inception in 1952.
on the other side: While the rising prices started to pinch – And for some low-income earners, the pain is much worse than that — there are reasons to be cheerful.
- The unemployment rate is low and Americans are doing much better than people in many parts of the world.
Plus: You could theoretically spend the summer sipping AriZona iced tea and eating Costco roast chicken while reading books—three products at fixed prices.
Bottom line: The American economy runs on people who spend money — 70% of economic activity, after all — and for most of us There is no place to escape the high prices.
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