Still, the breadth of the price gains shows how rising costs have seeped into nearly every corner of the economy. Grocery prices have jumped 12.2% compared with a year ago, the steepest such climb since 1979. Rents have risen 5.8%, the most since 1986. New car prices have increased 11.4% from a year earlier. And airline fares, one of the few items to post a price decline in June, are nevertheless up 34% from a year earlier.
The inflation surge first erupted in the immediate aftermath of the 2020 pandemic recession. As Americans channeled their spending toward items for the home, like furniture, appliances and exercise equipment, supply chains became overwhelmed and prices for physical goods soared.
Rents as measured by the government’s inflation index have risen more slowly because they include all rents, including existing leases. But economists expect the rising expense of new leases to send the government’s inflation measure higher in coming months. Many economists worry that the Fed’s drive to quell inflation will cause it to tighten credit too aggressively even while the economy, by some measures, is slowing. Much higher borrowing costs could trigger a recession, potentially by next year.
Though inflation is likely to slow later this year, it’s not clear by how much. Oil prices fell Tuesday to about $96 a barrel. And other commodities, including metals such as copper, have also become less expensive, mostly because of recession fears in both the United States and Europe.
Please stop using photos of the most expensive gas stations on the planet to go along with your 'news' stories. Average gas prices right now are a full three dollars a gallon less than in your image; you are intentionally misleading your readers to get more clicks.
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