How much are prices going up for US consumers?

For more than a year, large swaths of the economy have faced supply chain disruptions that have affected the availability of everything from wine and video game consoles to cars and eggs. For cars and consumer electronics, even though manufacturers wanted to build more items, they didn’t have enough computer chips or raw materials to do so for over a year. This has led to steep increases in the prices of new and used cars – if any are left in the lot – and dealers grabbing the latest video game consoles to resell them at inflated prices.

Many industries, including oil refineries, car factories and airlines, reduced their workforces and production in 2020 at the start of the Covid-19 pandemic, leaving them understaffed when travel demand fell. traced back.

Russia’s invasion of Ukraine and subsequent oil embargoes imposed by the United States and the European Union have also strained global energy supplies, isolating one of the world’s largest oil and gas producers. gas to the world and driving up prices as nations jostle to replace them.

And rising natural gas prices have caused the cost of electricity to soar, pushing up energy bills in some cities.

The federal government has taken measures to combat rising prices. President Joe Biden has authorized several withdrawals from the country’s Strategic Petroleum Reserve, and more than 20 states, including New York, Connecticut and Georgia, have either suspended their local gasoline taxes or introduced legislation for the TO DO.

The Federal Reserve has also raised interest rates three times this year, including the biggest rate hike since 1994 on Wednesday, in an attempt to calm demand by making it more expensive for consumers and businesses to borrow money. silver.

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