U.S. economy contracts for second consecutive quarter.
The U.S. economy is in recession.
For the second quarter in a row, U.S. GDP is down, declining by 0.9% on the heels of a 1.6% decline in the first quarter of 2022.
While unemployment remains relatively low, inflation is at a 40-year high and real wages have declined since the beginning of 2021. This is particularly harmful for families at the lowest end of the wage scale who are squeezed by low savings rates and decreased purchasing power of goods.
In addition to food prices spiking by double digit percentages, gas prices have been a huge driver of increasing costs for both business and consumers. The uncertainty in the oil and gas industry is causing significant problems for business community and average consumers alike. Currently, AAA reports that gas is $3.86 per gallon in Mississippi with the national average of $4.28. That is up from January 2021 in Mississippi where the price was $2.08, an 85% increase, but down from its over $4.00 per gallon high earlier this summer.
The Commerce Department’s economic news also follows yet another interest rate increase announced by the Federal Reserve just a day before. That benchmark rate increased three-quarters of a point for a second straight time on Wednesday as the Fed seeks to find a “soft landing” for the rampant inflation across the country.