A US government-monitored inflation gauge is showing an increase of 40% over the past 40 years. The situation in Ukraine may make things worse
According to Friday’s data, the Commerce Department released January data that showed an increase of 6.1% year-over-year in the inflation gauge. The increase is its biggest since 1982, and it’s the latest sign that Americans will continue to be impacted by the rising costs of goods.
According to the Price Index for Personal Consumption (PCE), this figure was calculated. The data shows that consumer spending increased in January compared to previous months, even though incomes were flat. While consumers increased their spending by 2.1%, average incomes rose only 0.1%. In December, consumer spending had fallen 0.8%.
As the Ukraine crisis continues, American consumers may be subject to more negative news. When announcing his latest batch of economic sanctions on Russia over the country’s decision to attack its neighbor, US President Joe Biden acknowledged that Americans’ wallets could soon be affected.
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Biden spoke out saying that both Russia as well the US would have to pay. But his administration has been working hard to combat potential rises in energy prices, which will continue an American trend of over one year. Gas currently stands at an average of $3.57 a gallon – a jump from $2.68 per gallon a year ago.
Moscow’s military assault on Ukraine could also lead to complications in oil exports from Russia and lead to more price hikes for Americans, experts have warned. According to the Associated Press, rates for aluminum and wheat made in Ukraine have also increased.
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