Inflation scares the US: it’s dangerous in Europe as well

Well, the good news is that when vaccines increase and infections decrease, the economy starts again. But there is also bad news on the horizon: with recovery, prices are starting to rise and for low-income workers, who are already plagued by the epidemic, the situation could accelerate. This is the incoming alarmUnited States. Question: It will be upEurope And inItaly?

In April, consumer prices United States 4.2% increase over the previous year: the largest increase since September 2008, in height The financial crisis. But if prices rise too quickly, low-income families will be forced to compromise. Because he remembers Mark Wolf, Administrative director National Association of Assistant Directors of Energy, The association that brings together leaders of the federal program for energy assistance to poor families, “based on our surveys, when families face prolonged bills, they reduce essential purchases, including food, medicine and clothing.”

Higher energy costs are one of the main reasons for the increase in prices. In May, the Americans Stady del Southeast, Driven by the panic caused by the cyber attack that caused the closure Colonial Pipeline, American Pipeline System Houston, In Texas, They rushed to buy fuel, thus causing a shortage and increase in supplies Gas prices. Problem, from the 2015 report J.P. Morgan, Low-income households are increasing their purchasing power as gas prices fall. The same goes for bills. Electricity prices rose 1.2% last month and 3.6% from a year earlier. According to an analysis‘City Company As of 2020, electricity and water bills in the U.S. Represents an average of 3.1% of the average net income of the family, but 20.6% of the net income of low-income households.

Lawrence Summers, Former economic adviser Barack Obama e Bill Clinton, One of the first people to sound the alarm: Megaprojects of public spendingBiden Administration They could heat up the US economy by triggering high inflation. Over there White House Underestimate the risk, but financial markets were shaken by the effects of inflation last week. Summers urges management to take three specific steps: publicly disclosing inflation in order to mitigate growth expectations, critics say rising federal unemployment benefits – some Americans are encouraging job-seeking – to reduce the urgency of disbursing aid funds after the September deadline Govt. However, management economists continue to show optimism in the approach “Go big“of Biden. The alarm even starts to spread UK And inEurope. For Italy, the worst effect of inflation – in addition to declining purchasing power of wages – is an increase in interest rates. As such, our country’s high debt will become lower and more stable.

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Vittorio Ferla