Uncontrolled Inflation in USA Jumped to 7% — Price May become Three Times than Normal
The inflation in USA is not showing any symptom to stop as it touched 7%. As per historical reports it is highest in this decade till now and the Joe Biden administration has got under pressure. Compared to December 2020, the inflation rate is 2% higher this year and it has made all the products and services extremely costly for the citizens.
While talked to a member of the government, he said that it’s due to the disturbance in the supply chain due to the pandemic. But, when asked about the solution, no valid way out was provided.
Whether it is the price of the housing, cars, food or services, everything has increased sharply making it too costly for the people. As per the Consumer Price Index (CPI) the price has increased between 0.5% to 3.5% for a wide range of products which has affected the economy of USA drastically and government is in confusion about how to cope up with this new situation.
USA depends a lot on other countries for several products ranging from meat, food grains, furniture, vehicle and so on. Due to the global pandemic, the supply chain has affected a lot and the crisis has caused a severe hike on the overall price.
As per a report, The Federal Reserve has planned to solve the problem by increasing the interest rate. When talked to some financial experts, it may cause extreme price hike of goods and services and by March 2022 the price of many products and services may become three-times compared to December 2021 which would be a never before situation in US.
When talked to Powell, he described that the demand of several products are still very high and the supply has been affected badly due to the pandemic. While US government has restricted some country to send their products to avoid further spread of Corona Virus, others have paused their delivery due to crisis situation in their area.
So, now we need to wait some more time to manage the situation and we believe, once this third wave of the pandemic is over, the situation will become normal again.