According to the AAA, the average price for one gallon of regular gasoline in the U.S. has set a historic high at $5.01 per gallon. Statistics show that 21 states have average prices for one gallon of regular far above the $5.01 mark while Va. remains below the national average at $4.86 per gallon.
While the good news is that the average wage has risen by $5.50 per hour, the gain has been offset by the highest inflation in 41 years. The rate in May had risen to 8.6 percent.
The cost of fertilizer necessary for farmers to produce their crops has risen more than 200 percent, and with diesel prices at an all-time high ($5.75 per gallon), the cost of transporting products from farms to cities has risen, resulting in skyrocketing food prices.
Many companies have resorted to shrinkflation, lowering the number of items in each package in some cases while selling for the same price or raising the price. Also, reducing the size of the product, such as a bar of soap that now sells for more despite being smaller. Selling for more while providing the public with less continues to present hardships for consumers, especially those on fixed incomes.
The USDA has raised its inflation forecast for 2022 from 6.5% to 7.5%, the highest since 1981.
With the bear stock market plunging the DOW on a deep dive, the Russian invasion of Ukraine continues to impact the world’s economies along with the aftermath of COVID-19 and its string of variants.
Supply line shortages, the escalated price of lumber and other building materials, and the increased cost of delivering materials have combined to force contractors to increase labor costs in building structures.
With the Biden Administration’s “Build Back Better” plan stalled in the U.S. Congress, the long, hot summer only a week away looms as a challenge for all branches of government to grapple with inflation, shrinkflation and stagflation.