Civic Register
| 5.15.21

U.S. Inflation Rose in April at Fastest Pace in 13 Years
How do you feel about the rise in prices?
This content leverages data from USAFacts, a non-profit that visualizes governmental data. You can learn more on its website, Facebook, and Twitter.
What’s the story?
- The Bureau of Labor Statistics (BLS) reported that inflation rose in April by 0.8% on a seasonally adjusted basis after a 0.6% increase in March. Over the last 12 months, “headline” inflation rose by 4.2% ― the largest 12-month increase since September 2008.
What is inflation and how is it measured?
- Inflation is a measure of the decline of purchasing power for a given currency over time, which in the U.S. means that a dollar effectively buys less than it did in prior periods because prices rise.
- The most common way inflation is measured through the Consumer Price Index for Urban Consumers (CPI-U), which shows changes in prices paid for a “representative basket of goods and services” by an urban consumer group representing about 93% of the U.S. population.
- CPI-U includes food, energy, commodities like cars and clothes, plus services such as rent and healthcare; and the relative importance of each to the overall basket shifts according to its proportion of all spending in a given month. This overall number is known as “headline” CPI, although economists also track a metric called “core” CPI which excludes food energy because those categories tend to have more volatility.
- The Federal Reserve aims to keep inflation at about 2% as part of its dual mandate of promoting stable prices and full employment, as a modest amount of inflation is viewed as an optimum policy in terms of encouraging consumer spending without penalizing savings and investment. When inflation starts to get out of control, the Fed raises interest rates to encourage more savings and less consumer spending.
What does the latest data say about inflation?
- In April, the 12-month change in CPI-U was an increase of 4.8% ― the biggest jump since September 2008 ― while it increased by 0.8% compared to March. This USAFacts chart shows headline CPI dating back to January 1948 and core CPI as far back as April 1958:
- The last year has seen higher levels of volatility among certain goods and services measured as part of the CPI-U basket of goods, with gas prices up 50% and used car prices up 21% over the past year. This USAFacts chart shows the percent change in CPI-U for a variety of goods from March to April 2021:
- Gas prices in April were an average of $2.77 per gallon based on a sample of roughly 900 gas stations across the country by the Energy Information Administration, which is a dollar more than the average price of gas at this time last year. This USAFacts chart shows the monthly average price of gas dating back to 1990:
— Eric Revell
(Photo Credit: iStock.com / sefa ozel)
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I’m in an unusual agreement, to a point with jimK, in that the current increase in prices are an anomaly of our country’s inability to self-govern during an extended crisis by those in government who would put political dominance of the Democratic party’s power grab before putting the common good of the people that they are charged to represent. And that’s my opinion. SneakyPete. 👍🏻👍🏻👍🏻👍🏻👍🏻 7 20. 21
Obviously a problem for fixed income.
its being driven by greed.
The rise in prices in many cases is due to the fact that many of our products come from another country, like China, & Taiwan. During COVID getting these items has been difficult. In addition, climate change has affected fresh produce growth. The rest of price increases isn't due to any real shortage, it's because some corporations see an opportunity to make a greater profit. True capitalism has existed in years! We need to bring all production back to the U.S. where it belongs. I don't want to buy another Whirlpool product made in Mexico and is crap!
I don' like it, but the pandemic has caused shortages and delays. It should reverse as we return to normal.
This too will pass as workers return following the covid shut down. This should not surprise any one.
with this president the worst is yet to come,,, this economy could have been booming
Our economy has experienced record trade deficits for the last twenty years that have sucked the reserves out of our banks. The Fed artificially raises reserves ("Quantitative Easing") without printing money, without creating commensurate value, and without creating debt. This has enabled the Democrats to spend trillions of dollars without any commensurate value being generated while incentivizing people to not work. You have to be really stupid not to understand how this can drive inflation!
Given the rate the GOP has been borrowing money over the last twenty years, I'm surprised it took this long.
Living gets more expensive, money coming in doesn't improve fast enough.
No one is “happy” to see prices go up, so the question is stupid 🙄 HOWEVER, we were in a YEAR LONG PANDEMIC!!! WTF DID PEOPLE EXPECT WAS GOING TO HAPPEN???? I mean seriously people, get your heads out of your butts if you are attempting to blame this on Biden or his administration AT ALL!!!!
With my pocket book!
Inflation can be brought under control by raising interest rates. For an unusually long time, interest rates have been near zero. This is not normal! If the Feds raise interest rates, then seniors and other people with savings accounts could finally start earning dividends instead of losing money. It also might serve to encourage otherwise recalcitrant people to begin saving more such that they may be less dependent on the government as they age.
funny how the price of goods goes up, even when we waste over 60% of what is produced, and wages stay stagnant even when the cost of living rises...businesses claim they cant afford to pay just basic living wages, despite record profits, and huge C.E.O. payouts. Government talks austerity for the people, but gives billions to a bloated military budget.Feels more then a bit out of whack...or just lies really.it feels like lies from capitalists. We need to start putting people first.Housing, healthcare, and clean water and air for all.Workers of the world unite.
Greedy Grady repercussions from the prior Trump/Pence Administration
Welcome to demonrats destroying the economy. When will you people learn?
Price inflation is increasing, even though other major world currencies are keeping up with the devaluation of the U.S. Dollar by devaluing their currencies. The price of food and energy is noticeably on the rise lately. Items bought at stores and online regularly are having their prices go up. Pretty soon, at this rate, the Dollar Tree Stores will have to change their name to 'Joe's Two Dollar Tree'. And what makes it maddening is that the inflation, although being artificially controlled by the FED, is all self-inflicted. It is one thing when people shoot themselves in the foot, but when your own Government shoots all citizens in their collective foot, who must purchase food and fuel each week, it is time for a collective scream out of the windows like we're mad as hell and we're not gonna take it! People who can least afford to pay for this rapid increase in price inflation are being harmed by those in charge of the Government who think nothing of purchasing those $12 boxes of gourmet ice cream like we have seen in Nancy Pelosi's home freezer. Our representatives must speak out on the floor of the Capitol against the insane amount of printing and spending of money that is driving up the prices these days. It must be curbed...cut that National Debit Card in half until the madness ends in D.C.
The rise in inflation is bad. Especially when people haven't recovered from the pandemic & the lost of income it has caused. Congress must address this.
We’re in Texas. We are insulated from the larger economy, even if our grid isn’t insulated. I have noticed a rise in groceries and other goods. However, I can comprehend we’re coming out of a global pandemic and while WE may be resuming production and consumption, not all our international suppliers are yet. So we may have to wait, maybe American manufacturers pick up the slack, either way, we will be fine.
Are we supposed to feel good about inflation? Higher prices will stifle the economy causing the Fed to raise interest rates which will slow the economy more. So even when we can afford to build a house it’s still going to cost more because of higher internet rates. Open the damn country and get people back to work.