US residents struggling to make ends meet due to record high inflation: Report

As the United States struggles with a record high inflation, several residents have been living in difficult conditions in the worst-hit regions, as they have been suffering from a dearth of finances to meet their basic daily needs. In several high-profile states of the US such as California, residents witnessed record inflation of an estimated 9.4% in the month of May which has further spiked over the last couple of months. The average inflation rate in the US, as measured in the major urban areas by the US Labor Department's Consumer Price Index, was 8.6% for May, a report by CNN stated. 

Inflation jumps to a record 6.8% in June

The overall inflation surged drastically in June and workers’ average wages remained the same. There are signs that Americans aren't likely to get the relief from rising prices of energy and food anytime soon. The inflation hike closely tracked by the Fed has jumped to a record 6.8% in June. Whilst calculated monthly, the prices of the commodities surged by 1% in June, in one of the biggest rise since 2005. "Even excluding the volatile food and energy categories, prices climbed 0.6% from May to June," the Feds warned, The Associated Press reported. 

The average gas price is already unbearably high across America, and the prices of food and fuel had seen locals scrambling to find ways to cut their spending and save some income. "Besides slashing cost on meat and driving, some residents started collecting recyclables to turn in for extra cash; some have been searching for discounted groceries and many others have to rely on the local food bank for donation," the report published on July 30 revealed.

Inflation may be expected to moderate in the months ahead with respect to some sectors, as in a positive sign the gas prices have also come under control from the average national peak of $5 to $4.26, according to an AAA report. Prices of some of the commodities such as wheat and copper have somewhat slumped. But the increase in the consumer demand for services, such as airline tickets, hotel rooms and restaurant meals has been fuelling inflation. “This is a (report) that’s going to keep Fed officials up at night,” Omair Sharif, president of Inflation Insights told The Associated Press.