Inflation explosion: The cost of everything is going up again. Price hikes hitting 40-year highs. Troubling new numbers now on ABC7
Addressing a concerned nation and anxious world, President Joe Biden has vowed in his first State of the Union address to check Russian aggression in Ukraine, tame soaring U.S. inflation and deal with the fading but still dangerous coronavirus.
The economic consequences of Russia's war against Ukraine have upended a broad assumption among many economists and at the Fed: That inflation would begin to ease this spring because prices rose so much in March and April of 2021 that comparisons to a year ago would show declines. The cost of wheat, corn, cooking oils and such metals as aluminum and nickel have also soared since the invasion. Ukraine and Russia are leading exporters of those commodities.
But even for some services unaffected by the pandemic, like rents, costs are also surging at their fastest pace in decades. Steady job growth and high home prices are encouraging more people to move into apartments, elevating rental costs by the most in two decades. Apartment vacancy rates have reached their lowest level since 1984.
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