Inflation flares up to record level in US - inflation index at 9.1% -

Washington: Inflation index in the United States has reached 9.1%, becoming a record for the last four decades. Since 1981, this is the first time that inflation has crossed 9% in the United States. The US agencies claimed that along with the increasing fuel and food grain prices, obstacles in the supply chain also is a contributing factor to this inflation flare-up. The US stock markets also crashed after receiving the information regarding the inflation flare-up. Along with the United States, even Great Britain reported an inflation index of 9.1%.

Moreover, inflation has been consistently increasing since Joe Biden took over as the President of the United States. In the initial stages, Biden blamed the inflation rise on the policies of former President Donald Trump. After that, claims were made that the supply chain disruptions in the Coronavirus pandemic and increasing demand were responsible for the increase in inflation. Now President Biden is holding the Russia-Ukraine war responsible for the inflation rise. Using the term ‘Putin Inflation’ consistently in his statements, Biden is trying to blame it entirely on the Russian President.

Along with the opposition leaders, analysts and economists are pointing out that the faulty policies of the Biden administration are responsible for the increasing inflation. Analysts pointed out that the rates of fuels increased due to the restrictions imposed by the Biden administration on the US oil industry, resulting in a reduction in fuel production and a record increase in the fuel rates. There has been an increase of a whopping 60% in fuel rates in the United States in the last year. Whereas the cost of air travel has increased by 34%. Over the last six months, the US population has been forced to dig into their savings to meet daily expenses, and a decline of a whopping $1 billion decline has been reported in the savings.

The media informed that US citizens were forced to spend nearly $500 more in June compared to May. But President Biden has claimed that the United States is coping well with inflation. Meanwhile, Bank of America, a leading financial institution in the United States, has predicted that the recession hit is necessary to stop this inflation flare-up.

Economist Larry Summers had warned just in the last month that, taking into account the unprecedented increase in inflation and crash in the stock markets, there is a threat of a significant recession in the United States in the coming year. Summers was an advisor during the tenure of former President Barack Obama.