So how much longer will inflation and these high prices last? And where can you find places to save?
We explore it all in a 30-minute special presentation, "Eyewitness News Guide to Inflation."
One look at the numbers shows why people are struggling. Inflation in April was at 8.3%, and wages aren't keeping up -- which is why any raise you get doesn't feel like one.
Eyewitness News reporter Stacey Sager took a closer look about how these high prices are hitting home.
Inflation makes everyday purchases harder
While it's true that inflation impacts everyone, it does not impact everyone equally.
A study by the Wall Street Journal found non-white and lower income Americans are especially impacted. More specifically, Black women and Hispanic men felt the greatest impact.
As for income, nearly half of those who earn $60,000 or less a year said inflation would cause them financial challenges. That's compared to 13% of people earning $150,000 or more.
Eyewitness News reporter Mike Marza spoke to people in Washington Heights and found one woman committed to helping her neighbors.
Inflation impacts everyone, but not equally
So what causes inflation to rise? It is a complex question loaded with complex layers, and the big challenge is how to level off price increases.
The pandemic has also played a key role in inflation, specifically the supply chain.
Federal Reserve raises interest rates in effort to bring down inflation
The issue of supply and demand is one reason the Federal Reserve decided to raise interest rates with the goal of bringing down inflation.
It may sound counter-intuitive, but by raising the interest on credit cards, home mortgages, car loans and school loans, people will have less disposable income.
The fed hopes that will, in turn, slow the demand for other products and ultimately bring down inflation. Will it work? ABC News Chief Business Correspondent Rebecca Jarvis has more.
Could raising interest rates bring down inflation?
The Tri-State Area has seen record gas prices this week, and even if you don't drive, the cost of fuel impacts everything.
Companies have to spend more money on gas to deliver their products, and then businesses -- particularly small businesses -- are faced with an almost impossible question of whether to absorb the extra costs themselves or charge their customers more.
Eyewitness News reporter Anthony Johnson examined the impact on businesses.
Small business faced with inflation challenges
Finally, 7 On Your Side's Nina Pineda has been providing inflation busting tips for weeks, from ways to save on gas and ways to earn a little extra money.
Now, she is looking at the best ways to stretch your dollar. It's something we can all do as we pay more for food and just about everything else.
7 On Your Side tips to stretch your dollar and combat inflation
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