US inflation hits highest level in January; Americans keep feeling worse about it￼
United states– America is struggling due to a high inflation economy. The price of the commodities are rising and Americans are concerned that Washington’s policies won’t do much about them.
Americans are concerned about their household finances because of inflation and the Covid-19 pandemic. According to a poll by Real Clear Politics, Americans remain deeply cynical about how President Joe Biden is handling the economy of America. According to CNN, consumer sentiment dropped more than economists expected between January and February of the year. The University of Michigan reported on Friday that consumer sentiment reached the worst level in a decade at 61.7 points. It is more than an 8 per cent drop from the January level.
Respondents to the consumer survey said that they are concerned about the United States (US) economy. The data revealed that the consumer price index, a key measure of inflation, rose to 7.5 per cent in the 12 months ended in January 2022. Inflation is at its highest point in 40 years as the cost for food, electricity and shelter soar.
America’s economy runs on consumer spending. The Omicron variant of Covid-19 already affected the economy at the start of 2022. Reportedly, Richard Curtin, chief economist of the Surveys of Consumers said that decrease in the sentiment index means a sustained downturn in consumer spending.
CPI (Consumer Price Index) rose 0.6% from December, higher than expected. The food index rose 0.9% in January following a 0.5% increase in December. According to The Guardian, high inflation in America is caused because of the soaring demand and a lack of supply caused by Covid-19’s global impact on trade. High inflation can be a problem for Joe Biden and Democratic lawmakers, who are heading into November’s midterm elections. Recently, Biden said that the officials are working to bring food prices down.