In the last 7 months, inflation surpassed 5%, and for the month of December it has reached 7%.
Many believe part of the issue is all of the stimulus payments and breaks the Biden administration has given out.
The cost of goods and services only continues to rise and the rates are some of the highest the country has seen in almost 40 years.
Up until this point, the inflation was blamed on supply chain issues caused by the pandemic.
21 states and 35 cities raise minimum wage for 2022
The CPI rose by .5% in December compared to November.
Compared to December 2020, December 2021 jumped by 7%.
The biggest contributing factors to this were the inflation rates for houses and used cars.
Housing rose .4% while used cars rose 3.5%.
Major financial changes for 2022 are here
What will happen to the economy?
The last time the economy dipped and worried people similarly to this was in 2008.
The issue with the economy today is that we’re in the middle of the crisis.
Costs of goods and services continue to rise as the pandemic inflicts issues onto America.
While the increase from November to December is not as high as previous months, it’s still happening.
The Federal Reserve plans to raise interest rates in an attempt to offset inflation through 2022.
It appears that inflation will continue to happen throughout the year.
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