Price inflation has rapidly eclipsed COVID-19 as an economic concern, and with good reason. To combat the problem, it's important to be clear about exactly what is causing it.
Federal fiscal policy — taxes and spending — and regulation have an enormous effect on the value of money.
The current situation has everyone on edge. Consumer prices rose by 6.2 percent over the past 12 months, the worst increase since 1990.
Unleaded gasoline costs 57 percent more than it did a year ago. Home heating bills are expected to be 54 percent above last winter's, used cars and trucks cost 26.4 percent more, the average price of a one-bedroom apartment has increased by 20 percent, and house prices rose at a 17.3-percent annual rate in October.
"Over the past 12 months, average hourly earnings have increased by 4.9 percent," the Bureau of Labor Statistics reports. That means that the average person's inflation-adjusted earnings decreased over the past year.
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