For the first time in arguably decades inflation is on the minds of everyone from Main Street to Wall Street to Washington. Prices are soaring after years of hardly any inflation.
The numbers: Rising inflation has cast a shadow over the U.S. economic recovery as Americans pay higher prices for a variety of goods and services ranging from steaks to used cars to plane tickets, according to a closely followed consumer survey.
Big picture: The Federal Reserve, the nation’s inflation watchdog, insists prices will come back down once the economy has mostly recovered from the coronavirus pandemic and pentup demand is satisfied. Americans are paying more for virtually everything: groceries, gas, appliances, sporting goods, used vehicles, auto insurance, vacation rentals and so on. That’s eating away at their paychecks and some of their hefty savings.The result: The attitude of Americans right now about their personal finances and broader economy is somewhat subdued despite a huge decline in coronavirus cases. The so-called index of current conditions declined to 89.4 in May from 97.2 in April.