“The annual inflation rate surged to 5.6% in July – the highest point in 17 years…

The previous month’s reading on annual inflation was 5%.

On a monthly basis, the Consumer Price Index jumped by 0.8% in July. That is twice the increase that economists had expected.

Monthly food prices increased 0.9% and 8.4% annually. This is one of the largest monthly increases of the year, matching the 0.9% increase in April.

Among the annual food price increases were a 12% jump in the price of cereal and bakery products and a 10.1% increase in fruits and vegetables.”

“Prices outpace paychecks
While economists are divided about the twin risks facing the economy, consumers are facing skyrocketing prices at the gas station and in just about every aisle of the grocery store. Prices of fruits and vegetables have shot up by 7.6 percent over the past year, while dairy products have jumped 9.2 percent and cereal 10.4 percent.”

Overall inflation may be kept down to a manageable number, but when the products we live on are eating our budget allowance, we are in trouble. We feel this pain more than ever because we do not have “extra money” around to absorb the increased costs of basic living expenses.

It makes it difficult to work hard at your job and take pride in your effort in accomplishment when you know your monetary rewards evaporate into smoke almost immediately. If companies are not willing to part with more money in salary/wage form, maybe extra time off could serve the purpose of “raises.” People love to have more time of their own and a company can deal with more employee days off than extra money flowing out the door.