WASHINGTON – As consumer prices continue to increase dramatically, the Biden administration must find a solution to the strained supply chains preventing the economy’s growth.
The Federal Reserve and Labor Department expect US consumer prices to continue rising significantly, testing Jerome Powell’s belief that inflation is transitory. Powell attributes the rising inflation to the supply chain bottlenecks.
Because of the COVID-19 pandemic, the country continues to experience a significant shortage of workers who can produce raw materials for consumers. Supply chains continue to experience a surging demand as economies recover from the COVID-19 pandemic.
According to President Joe Biden, the Port of Los Angeles and the Port of Long Beach will start accepting imports from other countries to ease the number of products entering the economy.
Companies like Walmart, FedEx, and UPS, also agreed to start moving their product 24/7.
According to professor and economist Sung Won Sohn, “inflation is no longer transitory.” The status of the bottleneck continues to worsen.
The consumer price index also experienced an increase of 0.4% last month from the original high last August. Because of the rising cost of meat, food prices have continued to soar since April 2020.
As a result, rent prices also increased by 0.5% last august. This increase was the largest the country has seen in five years. The rent income that owners receive increased by 0.4%.
Economists expect rent prices to be a significant contributor to the country’s inflation.