Because of petroleum and rising gas prices, United States inflation has accelerated at the fastest rate in the past twenty-six years. According to the article at , economic analysts expected a .7% increase in consumer prices. However, surprising the Labor Department, an actual 1.1% consumer price increase has resulted. “’There is so much uncertainty in the market right now that news of higher inflation doesn’t mean a rise in interest rates,’ said Stephen Malyon, analyst at Scotia Capital in Toronto.”
The article states three sides of inflation attack America: “severe housing slump, a credit crunch and financial market turmoil stemming from the collapse of the sub-prime mortgage market.”
Continuing with the fact that energy prices were 6.6% higher in the month of June alone, petroleum is over looked as being a major problem. America has a large problem with its dependency on foreign oil, but American officials are in denial; some UK officials are in agreement due to their strong diplomatic connections.
However, there truly are other factors that lead America down an economic down slope. Living costs have been more unstable than ever with mortgage holder and lender issues. Because of real estate problems and energy consumption troubles, regardless of credit evils, a perfect storm of inflation is devouring the nation day by day.
Moreover, even wages are down. No wonder the US is in such a slump—everything is becoming more expensive and citizens have less money to even try and purchase expensive goods; consumers have the potential to be the solution in a country so sided towards a capitalist style economy. In fact, wages have fallen by .9%. The country is in need of a change.