For anyone stuck on the streets this summer, the most common complaint was gas pump gouging. That’s the problem for anyone who takes a less than glamorous road trip to work every day. Add to that rising food and consumer goods prices, and many people are grumpy, if not anxious, about covering their expenses.
According to the US Bureau of Labor Statistics, the energy index rose 41.6 percent over the past 12 months and the gasoline index rose 59.9 percent (the largest 12-month increase since March 1980). The BLS reports that the consumer price index for all urban consumers rose 9.1 percent over the same period before seasonal adjustment.
The Federal Reserve announced its second hike of 0.75 percent in July to curb runaway inflation and avoid a recession. Domestically, experts predict inflation will continue to hit Utans.
Is all this inflation the result of corporate greed? What can be done to ease financial stress – and what can Utah businesses do to maintain profitability while strengthening their workforce during these wild times?
As CNBC reports, “The rising cost of fuel, particularly diesel, means that anything transported by truck, train or ship is affected. Energy costs are a major contributor to decades of high inflation, as all types of goods and services have high prices.”
The link between energy costs and inflation has sparked debate and controversy in recent months. In June, for example, President Biden released a letter condemning oil companies for their role in inflation.
Citing the discrepancy between increased profits and falling crude oil prices, the letter said: “In wartime, it is unacceptable that historically high refining profit margins be passed directly to American households….[C]Businesses should take immediate action to increase supply of gasoline, diesel and other refined products. The oil companies responded with a letter of their own, citing several reasons why rising energy costs were not their fault.
A July report by the Republican Joint Economic Committee also refutes the corporate greed argument. The report, released by Utah Sen. Mike Lee, who serves as a member of the rankings committee, refutes claims that gas and oil companies are using market disruptions to raise prices, and instead the administration. blame them.
“It’s no coincidence that Big Oil is making record-breaking profits after months of paying American consumers a hefty price,” says Jordan Schreiber, director of energy and environment at Accountable US, reports GOBankingRates. “Honestly, the justification for their fierce pricing is shallow. Even as the price of crude fell, the industry was reluctant to lower its historically high prices. And the industry has accused the Biden administration of not clearing public land for mining, but the reality is that President Biden approved more drilling permits in his first year than Trump, and the industry currently has 9,000 unused permits. sits.”