The economy is improving overall, but many Americans are still struggling with high costs of living, including food, gas, housing, and healthcare. This is partly due to corporations raising prices without decreasing their profits. President Biden acknowledges this and suggests grocery store CEOs could lower prices on essential items without sacrificing profits. The report emphasizes the role corporations have in driving up prices, but also recognizes that external factors like supply chain issues and geopolitical events contribute to inflation.
The European Central Bank (ECB) is monitoring inflation and deciding when to reduce interest rates. While recent data shows inflation is declining, they will gather more economic information, especially on wages, in April and June. The ECB wants to ensure workers' earnings improve, but also that companies absorb some of the costs to prevent excessive profit taking. Ultimately, the ECB aims to bring inflation back to their target in a sustainable and timely manner.
