Inflation hits home for lower-income groups

Higher prices forcing more sacrifices, compromises and budget-juggling

CHICAGO – Wall Street is worried about inflation. So are Amy Lopez of Eureka, Calif., Sharon Connlley of Duluth, Minn., and Elmer Hunt Jr. of Boise, Idaho.

They and other Americans are increasingly feeling the squeeze of higher prices, not only at the gas pump but in the cost of groceries, delivery charges, travel and numerous other items.

Inflation remains modest by historical standards at about 3.5 percent. It appears no threat to return any time soon to the double-digit rates of the late 1970s and early ’80s, perhaps not even to the 5 percent level last seen in the spring of 1991.

But driven by soaring energy prices, inflation is creeping toward 4 percent for the second quarter and is on pace for the highest annual rate in 15 years.

AP