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In April, worrying inflation hit the U.S. economy. U.S. consumer prices rose by 0.8%, the fastest year-on-year growth rate since 2008.
The price increase that has lasted for several months has made financial markets turbulent and has raised concerns that it may weaken the economic recovery brought about by the pandemic recession.
According to a report from the Department of Labor on Wednesday, consumers are paying prices for everything from food, clothes to new cars, rising faster than last month’s 0.6%. In the past 12 months, prices have risen by 4.2%, the fastest increase since a 4.9% increase in the 12 months ending in September 2008. Excluding fluctuations in food and energy, the core inflation rate rose by 0.9% in April, and the core inflation rate rose by 3%. Earnings in the past 12 months.
After years of inflation, due to the Fed’s efforts to increase the inflation rate, worries about rising prices have risen to the top of economic worries. The shortage of goods and parts related to supply bottlenecks is a key factor.
Investors are becoming more and more nervous. On Tuesday, the Dow Jones Industrial Average fell more than 470 points, or 1.4%, its worst day since February 26.
The main reason for the sharp increase in the inflation rate in April was that the prices of used cars and trucks rose by a record 10%.
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