The inflation rate in the U.S has gone up rapidly since the onset of Covid-19.  Over the next 10 years, 2022 to 2031, the forecasters predict headline CPI inflation will average 2.50 percent at an annual rate.The annual inflation rate in the US accelerated to 7.9% in February of 2022, the highest since January of 1982 which is a significant economic development. Due to what is  happening with Russia And Ukraine the gas prices have gone up because Russia was one of the largest countries with the most oil  other than the U.S. Also since the U.S cut ties with Russia it’s much harder to get oil and produce gas.

  In an article published by the New York Times, it talks about inflation and how more than half over everything is going up because of inflation. In the article Kristin J. Forbes, an economist at the Massachusetts Institute for technology, stated that “more than half of the increase, at least, is due to global factors. But there is also a domestic demand component that is important.” Global factors means what is happening around the world.

In an article by CNN, the CEO of Procter & Gamble said that it was raising prices by an average of about 8% on retail customers next month for its Tide and Gain laundry detergents, Downy fabric softener, and Bounce dryer sheets. That means that the price of  laundry detergent will be going up in price. But inflation is not just in the U.S. When a superpower as big as the U.S’s currency inflates to this degree, it affects every other country, this is because a country usually holds other currency like the US dollar to back up its own currency.

Because the U.S currency is being inflated so much people have moved to crypto currencies such as Bitcoin or Ethereum due to its inability to be inflated because the value is derived from the people. From oil topping $100 per barrel, to higher prices at the gas pump, consumers are feeling the effects of inflation everywhere they turn.

Food price increases are expected to go up between 20-year averages and the rapid increases observed during the Covid-19 pandemic. Another big contributor is the high cost of commodity prices, leading to surging energy and food costs. In the case of food, high prices have forced some consumers to buy less or switch stores. This means that since food prices are so high people have been buying less food or searching for cheaper store alternatives. These are some of the detrimental effects inflation is having on the US economy.