LANSING, Mich. (WLNS) – Inflation is near a 40-year-high.
Global forces from supply chain disruptions and severe weather to Russia’s invasion of Ukraine are fueling the surge and frustrations.
This weekend the average price of gas jumped to $4.45 a gallon. That’s an all-time high. But beyond the pumps, millions are fed up with the cost of filling up.
“I’ve never used the food banks before. But now I almost have to come. I mean, it’s changed very fast,” said food bank client Kelli Likens.
Millions need help as food prices are rising, both groceries and dining out. Airline tickets are soaring.
Most new cars come with one option: pay above sticker price. America’s median home price listing is up more than 14% in a year and more than 30% in two years.
A recent Gallup poll reported almost 70% of Americans say it’s a bad time to buy a house, a record high statistic.
The Biden administration’s searching for answers, six months before midterm elections.
“I want every American to know that I’m taking inflation very seriously and it’s my top domestic priority,” Biden said.
The Federal Reserve is under fire for a sluggish response. Most economists expect it to raise baseline interest rates again, possibly more than once this summer.
Concerns about just how aggressive the Federal Reserve will be, and whether it could trigger a recession, weighed on stocks, fueling a gloomy selloff on Wall Street. Last Friday ended its sixth consecutive weekly decline, a first since 2011.
The NASDAQ’s officially in bear territory. The S&P 500 is sinking closer. No one expects a quick turnaround.
“Prices will continue to rise. I think the best we can hope for is that they rise a little less slowly than they have been lately,” said Florida Gulf Coast University Economist Dr. Victor Claar.
Economists talk about overseeing a “soft landing” for this economy: hold inflation at 2%, keep the labor market strong and avoid a recession.
But everyone agrees: as an American challenge, this one’s daunting.