(CBS News) – Prices for almost everything we buy have been on the rise for months and a new report shows it’s only getting worse.
The Bureau of Labor Statistics says consumer prices jumped 9.1% in June compared to last year, an increase not seen in four decades. A look inside the numbers shows the cost of rent rose at an annual rate not seen since 1991. Prices at the grocery store are up 12.2%, the largest one-year increase since 19-79.
“It really impacts lower household incomes much more dramatically than anyone else. Don’t forget a lot of Americans have used the excess savings that they accumulated during the pandemic, stimulus checks, unemployment benefits,” says CBS News Business Analyst Jill Schlesinger.
In June the national average for gas was more than $5 a gallon, according to AAA. But since then, prices have fallen nearly 40 cents a gallon. But even with the drop, many drivers are still experiencing sticker shock. “Any little bit’s good, but we could be paying a whole lot less,” says driver Joanne Ward.
The Federal Reserve is expected to once again raise interest rates later this month in an attempt to ease price hikes, but there won’t be an immediate effect.
“It can really lag, so the impact of those rate increases takes a while to trickle through the economy,” Schlesinger says.
Many economists predict inflation may not start to ease until the fall and prices could remain at high levels through the summer.