Inflation has dominated the news about America’s economy in recent months as prices for food, gas and other goods have increased faster than they have in four decades. But inflation is a global phenomenon right now — and the U.S. has actually fared better than other countries in recent months. In June, consumer prices in the U.S. increased 9.1% over the previous year; they increased 9.6% across the E.U. in the same time period.
Much of the public discussion about inflation in the U.S. has focused on domestic problems, particularly President Biden’s policies. Critics argue that the American Rescue Plan, the pandemic relief bill that Biden signed into law 16 months ago, has supercharged consumer demand by sending $1.9 trillion to Americans, state governments and other programs. As higher demand has chased limited supplies of goods, prices have soared.
The law has certainly played a role in increased inflation, economists say. But the global trends suggest that focusing solely on the U.S.’s role misses a big part of the story — how external forces have driven up prices, too. Full Story
Source: NYTimes, 07.26.2022
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