Peach Tree Times

Historic levels of inflation are impacting the ability of Georgians to afford basic goods and services.

Georgia residents are becoming less optimistic with the state of the economy in the face of rapidly increasing gas and grocery prices.

"Gas is up 60%," Greater Georgia said in the tweet on Jan. 31. "Groceries are up by 6%. Inflation is the highest it's been in 40 years."

Gasoline pump prices have been on the rise in response to global tensions and winter weather increasing oil prices, AAA reported. As shown by their gas price report, areas of the Southern United States are experiencing lower retail gas prices when compared to other areas of the country, yet the state of Georgia is paying much more at the pump than it was 12 months ago. The average prices of gas in Georgia as of Feb. 9 are $3.31 per gallon of regular, $3.64 per gallon of midgrade, $3.97 per gallon of premium and $3.76 per gallon of diesel.

Soaring rates of inflation are affecting the entire nation. The U.S. Bureau of Labor Statistics recently released data showing that the consumer price index for all urban consumers (CPI-U) rose significantly in 2021.

CPI-U is "a measure of the average change in prices over time in a fixed market basket of goods and services" purchased by urban consumers, the bureau reported. CPI-U is based on the cost of food, clothing, shelter, fuel, drugs, transportation costs, medical fees and other essential goods and services.

The CPI-U reveals that the year 2021 brought a 7% increase in the all-items index from January to December. This is the largest 12-month increase the country has experienced in 40 years, with the last record-high having been documented in June of 1982.

The food index alone rose 6.3%, while the energy index increased by 29.3%. The 12-month increase for food at home was 6.5%, as, "All of the six major grocery store food group indexes increased over the period," the bureau reported. The index for meats, poultry, fish and eggs took the greatest hit in food with a 12.5% increase throughout 2021.

As inflation soars to the highest it has been in 40 years, the year 2022 has brought a change in America's outlook regarding the U.S. economy when compared to similar polling in 2021, McLaughlin & Associates reported in a poll.

As of January 2022, 62% of Americans who responded to the poll believe the country's economy is getting worse, while 30% believe the U.S. economy is improving, McLaughlin & Associates reported. When asked in March 2021, 47% of Americans felt the U.S. economy was getting worse, and 44% said it was getting better.