(Center Square) – The latest federal report suggests more problems for the US economy, even if experts want a surge in the economy after COVID.
Thursday Labor Statistics Bureau Released New data showing the biggest surge in inflation since the financial crisis more than a decade ago.
“In the last 12 months, all item indices have increased by 5.0% before seasonal adjustment,” said BLS. “This was the largest 12-month increase since the 5.4% increase in the period to August 2008.”
Higher inflation means more expensive goods and services, even when Americans are struggling to recover from the economic collapse of the COVID-19 pandemic and its subsequent closure.
Some items are more expensive than others. Household furniture showed “the largest monthly increase since January 1976”, new cars increased 1.6% in May, “the largest monthly increase since October 2009”.
Inflation reports arrive the day after the US Department of Labor shows disappointing job creation in May. Last month, the US economy added just 559,000 non-farm jobs, less than the 650,000 economists predicted. The unemployment rate for the month was 5.8%.
In April, the economy added only 266,000 non-farm jobs, well below the expert’s forecast of one million new jobs. Experts are worried about these numbers, coupled with rapidly rising inflation.
“The used car and truck index continued to skyrocket, rising 7.3% in May,” BLS said. “This increase accounts for about one-third of the increase in all seasonally adjusted items. The food index in May rose 0.4%, the same as in April. The energy index in May remained unchanged, gasoline. The decline in the index again offset the rise in the index for electricity and natural gas. “
Inflation data wasn’t completely unexpected. Last month, BLS released data showing the same surge as in the last 12 months.
Republicans immediately blamed rising inflation at the foot of President Joe Biden. Many on the right are trying to spread the term “bid inflation”.
“Consumer prices soared to a 13-year high and inflation rose 5% in May,” Republican Rep. Byron Donalds said on Twitter. Biden’s “economic agenda with exorbitant deficit spending.” Is very destructive to our country. ” Small businesses and low-income families suffer the most from #BidInflation. “
Republicans argue that Biden’s rapidly increasing debt from the trillions of dollars in the additional spending proposal only exacerbates the problem.
“Inflation is rising 5%,” said Republican Senator Tom Cotton. “And Biden wants to spend another $ 6 trillion to see how high it will be.”
Rasmussen Voting From May, we found that “76% of American adults are at least somewhat concerned about inflation, and 45% of them are very concerned.”
For now, economic experts are uncertain how much inflation will continue to rise this year.
Jason Farman, a professor at Harvard University and an expert at the Peterson Institute for International Economics, said:
But Biden remains optimistic. After last month’s data, he encouraged Americans to focus on the long term.
“So some months will exceed expectations, others will run short,” Biden said. “The question is,” What is the trend line? Are we heading in the right direction? Are we taking the right steps to keep it going? “And the answer is clearly yes. .. “
Inflation soars to its highest level since the 2008 crisis | Nation & World
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