Uncomfortably high inflation is a real problem and it’s not going away anytime soon
By David Goldman
Published on April 11, 2026.
The US economy has been dealing with high inflation since 2021, with inflation returning to pre-pandemic levels and Americans not yet adjusting to higher prices. The oil price shock from the Iran war is unlikely to result in a recession, but it could make it harder for low- and middle-income Americans to keep up with their payments. The savings rate (savings as a percentage of after-tax income) was only 4% in February, compared to 7.5% in 2020, and inflation surged 3.3% in March 2021. Despite this, the average annual paycheck growth has exceeded inflation for three consecutive years. The average US household is paying an additional $190 a month due to higher costs, which will effectively wipe out the average tax benefit for two months. The rise in gas prices has also negatively impacted other economic benefits.
Related Articles
How a moon mission and a phone call could help relieve trade tensions
The Artemis II space mission may have helped to defuse tensions between the United States and Canada by sending a brief note of goodwill towards each other.
Inflation grabs the spotlight from oil as consumer confidence plummets
Despite a ceasefire, consumer confidence hit a record low, while the S&P 500 gained 3.9% amid rising inflation and tensions in Iran.
Anxiety, uncertainty as Minneapolis presents yet another design for artsy Quincy Street
Minneapolis faces uncertainty as it presents new designs for Quincy Street, despite artists and building owners opposed, citing potential impacts on their community and businesses.