In July 2021, the United States Department of Labor reported that the Consumer Price Index (CPI) rose 5.4%. The increase in consumer prices was the largest jump since August of 2008, when the housing market collapsed.
This rise has resulted in the price increase of many common goods, such as food and gasoline.
According to the Department of Agriculture (DOA), food prices have seen the largest increase due to rising inflation rates. The DOA reports that the price of restaurant purchases has increased on average 4.6% from last year, and food prices at the grocery store have increased 2.6% from last year. The Bureau of Labor Statistics reports that bacon, coffee, eggs, whole milk and produce have seen the largest price increase in the national average.
Gasoline prices have also been affected by inflation. David Blackman, a financial reporter for Forbes magazine reports that the national price of gasoline has risen nearly one dollar per gallon from one year ago. The United States Energy Information Administration suspects that gasoline prices will continue to climb throughout the winter of 2021.
Economic researchers believe that the rise in current prices can be attributed to the reopening of businesses without enough staff on hand. Glenn Kessler, an economics analyst for The Washington Post, stated that while America is working to reopen the economy, supply is low but general demand for these products is high.
Kessler also stated that due to labor shortages, employers are…
