The U.S. saw a rise of 0.9% in domestic retail prices during the month of April, a jump that has put American consumers in a hard situation as they try to keep up with record inflation rates.
Higher demand and thus sales of electronics, cars, and at restaurants has led to the jump, according to the Department of Commerce. Gas prices fell during April after months of consistent inflation, stemming from before the Russia-Ukraine war. However, the conflict made prices go even higher.
Even with an economic contraction at the beginning of 2022, and roaring prices growing even higher, spending still continued to increase from both consumers and businesses.
The average consumer’s disposable income has gone up as a result of wage increases, savings, and a crazed job market due to new workplace jobs.
However, as prices continue to rise due to an ever-growing inflation rate, analysts are wary in regards to current spending patterns. If the growth begins to slow, the U.S. may see a potential recession.
See also from Business News:
