Consumer prices rose 4.2% from April 2020 to April 2021.
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The Lede
Everything seems to be more expensive lately, from the cereal and Coca-Cola sold in grocery stores to airfare and hotel prices as more Americans begin traveling again. Economists believe the increase in prices is due both to disruptions in the global supply chain of raw materials and to inflation caused by the government pouring trillions of dollars into the economy during the pandemic.
Key Details
- The 12-month jump in consumer prices is the biggest increase since September 2008, which was during the global financial crisis.
- The Federal Reserve Chair believes that the spike in prices is temporary and merely reflects growing demand from Americans who are now more willing to spend money on travel and outdoor activities.
- If the higher prices keep up, however, it will disproportionately affect Americans who are currently unemployed or struggling financially.
