The Labor Department report issued this Wednesday reveals that there were significant increases in the costs of hotel stays, used cars and airfares
Photo: BULENT KILIC / AFP / Getty Images
Saturday, September 28
Inflation: Consumer Price Index increased 0.8% in April compared to March
A lot of products that you use every day have become more expensive in the last year. Consumer prices increased 4.2% in April compared to last year’s levels when the world economy was affected by the coronavirus pandemic, according to a report released Wednesday by the Labor Department. This is the largest increase recorded in recent 12 years since the 4.9% increase recorded in 2008 when the global financial crisis occurred.
According to the report Product prices rose 0.8% each month so companies were they were forced to pay more to be able to obtain products such as steel, wood or groceries amid interruptions supply chain .
Another factor that has caused an increase in prices have been the different rounds of delivery of the stimulus check . The government injected trillions of dollars into the economy in an effort to mitigate the impact caused by the coronavirus pandemic, which also contributed to inflation.
What products did the largest price hikes?
The rise in prices affected a variety of products, especially second-hand cars and even foods such as bacon, cereals as well as beverages such as Coca-Cola and even the price of fuels.
The Airfare and hotel prices also skyrocketed after large numbers of citizens have been vaccinated against COVID – 19 which is encouraging a large number of Americans to travel again.
The salaries
Both restaurants and hotels are some of the sectors of the economy that have had difficulty finding workers , some experts mention that concern about contracting the COVID virus – 19 and enlargement of unemployment benefits offered by the federal government and the states is limiting the entry of new workers .
This is one of the reasons why some companies are offering higher wages or better benefits as an attempt to attract more workers which could also contribute to generate a greater increase in prices of basic consumer goods .
The economic recovery is good news for the recovery of employment levels, however, the increase in prices or inflation presents a significant risk .
During the pandemic, most large retail companies recorded levels record sales , however could struggle if they continue to face higher costs .
Despite the economic recovery in the country, millions of workers aú n do not get back their job they lost last year and their income level is still not the same as it was a year.
Those who have returned to work or continue to receive financial support thanks to the three rounds of stimulus checks and money from the unemployment benefits , are facing a form disproportionate in price increases.
Related: 5 mistakes to avoid when buying groceries to do not overspend
Jerome Powell, the chairman of the Federal Reserve (Fed), has mentioned that the economy is experiencing a rise in prices arguing that the effect will be transitory until supply chains are restored and consumer demand for spending and travel decreases.
The Fed estimates that long-term inflation will be around 2% but the danger will continue if prices do not stabilize and continue to rise.
Economic experts point out that the price increase could last a couple of more months until the fall when prices could return to the levels they had before the arrival of the pandemic.
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