U.S. inflation hit 6.2 percent in October, well above the Fed's 2 percent target and the highest level in 31 years. Since the outbreak, the United States has spent nearly $10 trillion, in exchange for soaring prices, supply shortages, nearly half of families suffering financial difficulties, low-income families are ushering in a "severe winter", millions of families do not have the money to pay heating costs.
Over the past year, ham prices have risen by 20 percent, egg prices have risen by nearly 12 percent, gasoline prices have risen by 50 percent, washing machines and dryers have risen by 15 percent, the Associated Press notesCars, etcAlmost all the goods are going up in price.
According to a survey released on December 2nd by Gallup, 45 per cent of American households are experiencing varying degrees of financial hardship, 10 per cent believe that financial difficulties have seriously affected their lives, and 71 per cent of low-income households are experiencing financial difficulties as a result of rising prices, the hardest hit by inflation. Financial difficulties also accounted for as much as 30 per cent of those surveyed with a diploma in higher education.
That follows three public comments from Tesla on December 1 calling for a special tariff exemption for car graphite batteries, a key ingredient that only China can supply.
"The U.S. economic recovery is in poor shape, with gross domestic product falling from more than 6 percent in the first half to 2 percent in the third quarter, so the Fed is afraid to raise interest rates lightly," Zhou Shijian, a senior fellow at Tsinghua University's China-U.S. Relations Research Center, told First Financial. But the best way to deal with inflation is for central banks to raise interest rates, take money back from social circulation and reduce it. ”
Gasoline prices rose 49.6 percent from a year earlier to their highest level since 2014, according to the Labor Department. Food prices climbed 5.4 per cent, with pork prices up 14.1 per cent from a year ago, the biggest increase since 1990. New car prices jumped 9.8 per cent, the biggest increase since 1975.
The price of furniture and bedding rose by the most since 1951. Prices for tyres and sports equipment have risen at the highest rate since the early 1980s. Restaurant prices jumped 5.3 per cent, the biggest increase since 1982.
Rents and house prices also continued to rise, with rental costs up 0.4% in October compared with September. The median selling price of a single-family home climbed 16 percent from a year ago to $363,700, according to data released on Nov. 10 by the National Association of Realtors.
For years, U.S. inflation has remained below the Fed's 2 percent annual target. But since the outbreak, the situation has changed dramatically.