US Inflation Continues Breaking 40 Year Record — Consumer Spending Dropped Sharply
Inflation in USA is increasing everyday creating new records and now last month it breaks 40 years record which affected people spending habit badly and it dropped a lot since February 2021.
As per the Commerce Department’s report, people purchasing has decreased by another 1% last month making it tough time even for the businesses to collect revenue from the market.
A horrifying increment of 5.8% in the inflation rate has attacked the market compared to December 2020, which is 0.4% higher than last month, says the Federal Reverse. As per the historical records, this situation happened last time in the year 1982 making it a milestone in the US history.
As per a Senior Economist in USA, the sudden peak in the pandemic has made the situation worse as it has affected the supply chain badly and it should get normalised as the year progresses. However, the citizens are facing tough time managing their budget, specially when USA is going through a high employment crisis since 2020 and there’s no remarkable change in the pattern.
However, Jerome Powell thinks the scenario will become opposite, and the price would go even higher in the coming days as the pandemic situation isn’t going to change very rapidly as new strains are getting activated constantly at different places of the world. So, now we need to see what monetary policy the US Government introduces to fight against this inflation.