On Wednesday, the Bureau of Labor Statistics reported that shoppers paid significantly higher prices for a variety of goods in June, as inflation maintained its grip on the slowing U.S. economy.
The consumer price index, which measures the cost of living across a wide range of goods and services, increased by 9.1% from a year ago, exceeding the Dow Jones projection of 8.8%. Since November 1981, that was the inflation rate that was the highest.
So-called core CPI rose 5.9 percent as opposed to the estimated 5.7 percent, excluding volatile food and energy prices. Core inflation gradually started to decline after reaching a peak of 6.5 percent in March.
In comparison to the respective predictions of 1.1 percent and 0.5 percent, the headline and core CPI increased by 1.3 and 0.7 percent, respectively, on a monthly basis.
Together, the data appeared to refute the idea that inflation may be at its top because the gains were spread over a number of different categories.
All thanks to Biden’s handling of the economy, the Americans are now suffering, and because of the high level of inflation and the possibility of a recession the Biden administration failed to give a solution to Small-business owners who have never been more pessimistic about the future of the economy.
Following the National Federation of Independent Business’ monthly index, the share of small firms that expect business conditions to improve in the next six months fell in June to the lowest level on record.
The NFIB, the largest small-business advocacy organization in the country, has been compiling the survey for 48 years.
NFIB Chief Economist Bill Dunkelberg said:
“As inflation continues to dominate business decisions, small business owners’ expectations for better business conditions have reached a new low.”
On top of the immediate challenges facing small business owners including inflation and worker shortages, the outlook for economic policy is not encouraging either as policy talks have shifted to tax increases and more regulations,” he added.
High inflation was once more cited by small firms as their main issue. According to the report, businesses have boosted prices to offset their own rising costs, but frequently not by an amount sufficient to preserve profit margins.
“We suspect many business owners never expected inflation to get this bad or be this persistent,” Wells Fargo economists wrote early Tuesday. “While it was easier to pass higher costs along when the economy was humming, many businesses are having a harder time passing on higher costs today, which is eating into operating margins.”
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