Commentary
The rising cost of living, tightening credit, slowing consumer spending, along with declining real wages and retrenchment in the jobs market, are each conspiring and threatening to move the U.S. economy into recession later this year. Despite lower headline Consumer Price Index (CPI), inflation is still taking its toll on American families.
Just released CPI data shows the headline inflation figure came down from 6 percent in February to 5 percent in March. This was the lowest overall price increase in nearly two years, and it was largely driven by a 6 percent decline in energy prices. However, the headline number masks continued high inflation in two of the most important spending categories for working and middle-class Americans. Households are feeling the pressure as prices of food and shelter continue to climb faster than overall CPI, and importantly, faster than wages….