Inflation in Federation Reserve Rose 4.9% — Fastest Rise after 1983
Making the fear right, the inflation rate in Federal Reserve has become uncontrolled with a sharp rise of 4.9% compared to the December 2020 price. As per historical record, last time in 1983, inflation reached this height.
As per the personal consumption expenditures price index also is higher than 4.8% which doesn’t include food items and energy. It is really going to effect in the country’s economy in the coming time badly and the result would sustain for a longer time.
When checked in detail, it is found that the employment cost after the long pandemic has increased by 4% making every product and service costlier. Also, due to the work from home situation, the production has hampered to a great extent based on the type of service which has made the situation even worse for the businesses which eventually adding fuel to the inflation.
In addition to this, people’s personal income has increased just 0.3% which as a result, as per the expectation, decreased people’s expenses by 0.6%. It is of course a never before situation in Fed’s history after 1983 putting millions of people in trouble during the pandemic.
As per the Labour Department’s report, the employment cost has increased more than 4% in the last 1year which is highest in the last 20 years. However, the apparently good news is it was 0.2% less in the last quarter.
Now, as per the economy experts, it’s time for the Federal Reserve to take serious steps to control the inflation and focus on increasing the GDP.