In the month of June, there was a slowdown in the surge of prices, providing some relief to consumers. Latest figures from the Bureau of Labor Statistics revealed a 3% increase in the consumer price index in June 2024 compared to the previous year, lower than the 3.3% recorded in May. This marks a significant improvement from the peak of around 9% seen two years ago.
Despite the heated discussions during the recent U.S. presidential debate, where President Joe Biden and ex-President Donald Trump traded accusations over the price surge, experts stress that the reasons behind the soaring prices are more intricate.
A significant portion of the price surge was instigated by global events beyond the control of any governing body. Disruptions stemming from the COVID-19 pandemic and the Russian-Ukrainian crisis have had a profound impact on supply chains and market dynamics, leading to price hikes.
The Federal Reserve, an entity operating independently from the executive branch, faced criticism for responding slowly to the growing price surge, prolonging the period of high prices. The measures implemented by both Biden and Trump, such as the aid packages during the pandemic, did contribute to the price surge to some degree but were not the primary driving factors.
Analysts agree that the rising prices are largely a result of global supply and demand imbalances rather than the direct actions of any single governing body.
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