Inflation hits 40-year record in June
Inflation hit a fresh 40-year record in June with consumer prices increasing 9.1% over the last month, according to the Labor Department, and the sudden acceleration in prices has many people needing help to get by.
Bags of free groceries were loaded into people's cars outside the Foothill Unity Center in Monrovia Wednesday. Mary Valdez picked up her free food for the week.
"Right now, it's really hard times for everybody," said Valdez.
She who works at a grocery store deli counter where she can't afford to buy groceries there since inflation has increase the cost of food.
"Inflation, everything. I work — can't mention the market, but I feel bad for the customers when they look at us, like, 'Wow, this went up,'" she told CBSLA.
Pasadena City College student Kevin Martinez is picking up food for him and his parents. He said he tries to cut back where he can.
"I notice the gas, but I really try to not use my car as much," Martinez said. "I got a skateboard and a bike. I also have a motorcycle. I go to school on that. It really helps. Also, the train."
Mike Antennesse with the FootHill Unity Center said at the beginning of the pandemic, they went from helping 4,000 to 12,000 families a year, and while demand has dropped off some, he expects to see more people come in as long as prices continue to go up.
"We are still meeting the need here in the community the best we can," he said.
It's the same story at food banks across Los Angeles County.
"We're going to try to maximize the food supply coming in. We're going to start increasing food purchases again," CEO of LA Regional Food Bank when asked how his organization will be able to keep up with demand.
It's not just food either. The cost of medical care also rose in June. The Unity Center's free annual University of Southern California dental clinic was fully booked this week, with more than 100 people getting treatments and dozens more on the waitlist.
USC Business Economics Professor Rodney Ramcharan said inflation has been impacting even workers who got a typical 5% pay raise.
"A 9% increase or a 9.1% increase in inflation means that roughly for the typical person, they've got a 4% pay cut. So, that's not great news," he told CBSLA.
Professor Ramcharan is hopeful that as oil prices go down, the price of food will also drop, and some signs are showing that inflation will cool off in July.
Economists also say that if there's a decline in inflation, it usually comes at the expense of an increase in unemployment.