Recently, the issue of inflation has taken the toll on much of the world considering the economic crisis caused by the Covid-19 Pandemic. Notably, the U.S. has stood out as the most affected countries in the world. After an annual inflation rate of 5.8% recorded in 2021, prices in the U.S. market are encountering an increase at the highest rate seen in the past 40 years. Just this past December, the cost of goods and services advanced by 0.4%. 

In addition, the PCE (Personal Consumption Expenditures) price index rose in the past year at the fastest rate since 1981, which is definitely alarming. Unfortunately, this alarming rate has also continued into 2022, and has led to a decrease in consumer spending. In actuality, Americans, especially the economically deprived ones, have struggled to keep up with the consequences of inflation as food prices have increased across the board.

When it comes to other goods and services, supply chain issues have worsened the situation by driving prices higher as supply can’t keep up with demand. President Biden has made tackling price increases a priority; however, it seems as though that’s not enough. Something definitely needs to be done and it has to be done quickly. 

There are a variety of factors at play as to why Americans have been encountering an increase in prices in every aspect of their lives. Considering the labor shortage caused by the Covid-19 Pandemic, which has turned the world upside down, the emergence of inflation is definitely not surprising. Employers have been frantically trying to fix the problem by offering perks and thus leading to a rise in wages for retail employees. Additionally, another concerning factor is the global shortage of many essential products such as gas and food shortages. Hopefully, the cost of living will soon begin to decrease so that all Americans may once again start living a financially stable life.