The latest inflation data of the USA has raised the concerns of the Biden government and its economists. According to the latest data received from the BLS, the price of consumer goods in the USA has increased by more than 7% in the past 1 year.
This is not the end, some economists say that the actual increase is even more. In the calculation, house price and rent have not been included properly. According to bureau data, housing inflation in the US stood at 3.7 %. Whereas in reality, house prices have increased by 20 % and rent by 13 %. He said this on the basis of data from the Zillow National Rate Index and websites related to the real estate sector.
Analysts say that taking into account the inflation rate, it means that the real income of the common people has fallen by 3.1 % in the last 1 year. This is the biggest drop since 2007. The economic slowdown started in 2007-08.
Because of that, the average real income had come down. But the fall in January 2022 is the biggest since 2008. Analysts say that to protect the income of employees from inflation, it is necessary to increase their wages, but in that case, the expenditure of companies will increase and that could further increase the inflation rate.
