|Posted by JJ The Psychotherapist on May 12, 2021 at 2:05 PM|
When compared to a year ago, the Consumer Price Index increased by 4.2 percent in April, raising concerns about high inflation.
The increase in the index was the largest monthly since the Great Recession in 2009, and it reached its highest level since 2008. Dow Jones and The Wall Street Journal polled economists, who predicted a much smaller 0.2 percent increase.
"The stimulus checks, job market dislocations, and supply chain issues caused by the pandemic are short-term drivers of inflation, and the Fed will look past them in setting interest rates," said PNC Financial Services senior economist Bill Adams.
According to Market Watch, a wide range of goods and services are increasing at record rates, including used cars and trucks, tires, computers, televisions, furniture, toys, computers, and airline fares.
Some economists are concerned that the aid checks given to Americans during the pandemic are contributing to inflation.
Food prices are also rising twice as quickly as they were before the pandemic. However, gas prices reportedly fell in April, but are now back on the rise, with the national average now exceeding $3 due to a pipeline cyberattack that has caused a petroleum supply shortage on the East Coast.