Rising oil, food and rent prices have caused the US to plummet over the past 40 years. This is according to new figures released by the federal government on Wednesday.
Consumer prices rose 9.1% compared to the previous year. This is the biggest jump since 1981.
Many criticize the huge rise in oil prices.
“The main source is oil prices,” said Brighton Securities economist and chairman George Conboy. “But that is not the only reason. If we look at the old meaning of inflation, it is a lot of money to drive less stocks. “
Conboy realizes that many people across the country and around the country are experiencing economic hardships that are growing daily.
Families are forced to make major changes in their budgets to just put dinner on the table.
“Forty years ago, we had this kind of inflation and it was difficult for families across the country,” Conboy said. “The way we as a economy stopped inflation last time was raising interest rates. But interest rates went up in price two levels, car loans went up in price two, and we came to a slowdown in the early 80’s due to high interest rates. This is very worrying if we raise interest rates to reduce inflation, we can see the economy going down. It is possible. We have already fallen in the economy. four more are increasing. ”
Although the drop in prices at the pump looks like a good sign, gas prices are still much higher than they were a year ago. Conboy says the decline is not enough to affect the economy.
Low-income and black Puerto Rican people face a serious problem because their income goes to basic necessities, such as housing, transportation, and food. It is a big problem for everyone, but for those in poor areas – it is very difficult.
In many cases, low-income areas are already vacant and have no reserves or areas to reduce. They will no longer be able to raise the prices of what is going on.
Although Conboy said there are many more important issues, abortion, guns, violence, they believe the rise in prices will be one of the biggest factors in the November elections.
In the June Poll under the direction of The Associated Press and NORC, 40% of Americans say coping with rising living costs and rising inflation should be a priority this year.
Only 14% of people think that December.
Conboy says he does not expect things to change anytime soon.