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Biden backs 15% minimum corporate tax, inflation drives up grocery prices: How the news can affect your money

Plus, S&P 500 shrugs off inflation and closes at an all-time high.

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US President Joe Biden attends the G7 summit in Carbis Bay, Cornwall on June 11, 2021.
Leon Neal | AFP | Getty Images

The S&P 500 hits a record high, President Joe Biden is set to endorse a global corporate tax minimum, and prices for some groceries are skyrocketing. Here's how the headlines could affect your money.

S&P 500 hits record close 

All three major indexes rose on Thursday. The S&P 500 hit an all-time high at close despite an inflation report that showed big price pressures. The Dow advanced less than 0.1%, and the Nasdaq gained 0.8%. 

As of Friday morning, markets were up. 

Biden, G-7 leaders to endorse minimum corporate tax

Today, leaders of the Group of 7 nations are set to endorse a global 15% minimum corporate tax. The Biden administration says the global minimum tax is a step toward creating "foreign policy for the middle class." 

If the tax minimum is enacted, corporations would no longer benefit from moving their headquarters to low-tax countries like Ireland or the British Virgin Islands. In addition to higher tax revenues for the U.S., this could result in more companies keeping operations in the country and hiring more American workers. 

Grocery prices are up

Going to the grocery store? Your bill could be higher than usual. Because the supply chain has not fully recovered from slowdowns caused by the pandemic, the price of certain groceries is up.

A gallon of milk, for example, was almost 20% more expensive in May than it was in July of 2019. Beef will likely be marked up for the rest of the year as well, experts say. 

Words you've heard: consumer price index 

The consumer price index measures the average change in price over time for a "basket" of typical consumer goods and services, like food, housing, and energy. One of three primary measures of inflation in the U.S., the CPI recently saw its highest year-over-year increase since August 2008: 5%.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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