Inflation in the US hit heights unseen in over four decades, but has now begun to stabilize. In December, the Consumer Price Index (CPI) was 6.5% higher than the same time the previous year, a decrease from its June 2022 peak of 9%. NBC News is tracking prices across many different areas, and updating the chart monthly.
The year 2021-2022 saw multiple industries, such as oil refineries, car companies, airlines, and tech manufacturers, grapple with substantial supply chain disruptions. This was particularly evident with cars, video games, and eggs, where manufacturers were unable to build enough of due to a shortage of computer chips and raw materials. As a result, many companies had to reduce their staff and production levels, leaving them understaffed when the demand for travel resumed.
The Russian invasion of Ukraine, and the sanctions imposed by the U.S. and the European Union on the country’s oil exports, have caused a disruption in global energy supplies. This has caused prices to rise as countries search for alternative sources of energy. Further, the higher costs of natural gas have led to increased electricity bills for many cities.
In response to these rising prices, the federal government has taken steps to mitigate the issue. President Biden has ordered several oil withdrawals from the Strategic Petroleum Reserve, and over 20 states, including New York, Connecticut, and Georgia, have either suspended or proposed legislation to suspend local gas taxes. Additionally, the Federal Reserve has increased interest rates on borrowing in order to reduce demand.
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