Inflation Soared in 2022, Forcing Fed Rate Hikes That Squeeze Household Budgets

Inflation rose significantly in 2022, peaking at 9.1% in June before dropping to around 3-4% by late 2022/early 2023.

The Federal Reserve has been raising interest rates to bring inflation back down to its 2% target range.

Higher inflation has put pressure on household budgets due to increased costs of goods and services.

Financing costs have also increased due to higher interest rates, adding to household budget strain.

The Fed is expected to continue raising rates as needed to curb inflation, meaning ongoing volatility and financial pain for consumers.