Inflation Rises 5.4%

Due to a surge in consumer prices in September, inflation rose 5.4 percent from where it was a year ago. U.S. consumer prices rose approximately 0.4 percent in September, as the costs of new cars, food, and gas reached yearly highs. The sudden increase in inflation is reflected in the new prices of imported goods as well, for furniture, cars, and televisions are limited in supply and valued greater. COVID-19 has shut down millions of factories across Asia, slowing down port operations, leaving containers anchored at sea, and delaying the shipping time of specific items, making some goods extremely scarce. 

Higher prices have also caused hourly wages to rise 4.6 percent since September, which may seem great for the workforce, however, it’s not enough to keep up with inflation, and has thus resulted in a greater unemployment rate.

Although there have been many increases in the price for specific goods, prices have fallen in categories which had been initially pushed much higher by the pandemic. These declines have kept core price increases from worsening, thankfully. 

Used car prices declined 0.7 percent last month, after costs had skyrocketed in the summer. Additionally, the cost for hotel rooms, car rentals, and airline tickets all fell, as the spike in the delta variant cancelled many travel plans. Unfortunately, smaller businesses are suffering. Family-owned franchises have had to pay more for food, limiting their income, and reducing the quality of products. Many renowned economists do not see an end to this trend until COVID protocols are lifted, and daily life can return to normal.