During march The United States has faced the rise of inflation. According to the U.S. Bureau of Labor Statistics report the Consumer price index (CPI) has been increasing in the past 12 months. In compliance with economist and against the opinion of certain politicians, articles like gasoline and rent have gone up in price. Inflation specifically rose 0.4 in relation to last month. In comparison to last year, it went up 3.5% according to the U.S. Labor Department.
The CPI is an indicator that meassures how fast and how prices change in economy, covering products and services. It meassures everything, from fruits and vegetables, to even haircuts, concert tickets or domestic appliances. It is a thorough analysis that helps to better understand EE.UU. current economy. CNBC published the following chart which shows elements and the rise in percentage they have experienced in comparison to 2023.
Despite the growth of inflation, it has to be stablished that it has lowered in comparison to 2022 (during the pandemic). Back then, in the middle of the crisis, inflation percentage was 9.1%. However, the goal was to reduce it to 2% which still has not been achieved by government policies. The Inflation Reduction Act of 2023 (IRA) presented by the U.S. Department of the Treasury and IRS. Which is a modified vevrsion of 2022’s act, stablishes:
- Provides targeted incentives to drive investment and create opportunity in communities across the country.
- Encourages clean energy project developers to meet strong labor standards, so that workers benefit from the clean energy economy they are helping to build.
- Will lower the costs of energy-saving property improvements and rooftop solar installation, saving working families and small businesses money on their monthly utility bills and empowering families and businesses to shield themselves from volatile fossil energy prices.
- Allows state, local, and tribal governments, as well as non-profit organizations and other tax-exempt entities, such as rural electric co-operatives, to receive certain tax credits as payments, expanding the range of actors that will have a direct incentive to invest in their communities.
Despite that inflation has not gone down to the proyection: to go back to the percentage before the COVID-19 pandemic. During a press conference the president Joe Biden declared that the report shows inflation has reduced more than 60% from it’s peak point (2022 pandemic). He recognizes the necessity to keep lowering prices for working families. Saying that prices are still too high, particularly regarding groceries and rent.