According to new reports, President Joe Biden has successfully managed to saddle the U.S. with the highest inflation numbers it has seen in the past 30 years – quietly destroying the purchasing power of middle class families.
Statistics from the department of labor revealed that U.S. inflation hit its highest year-over-year surge in more than 30 years last month.
The consumer price index, a basket of products economists use to track overall changes in price, surged 6.2% from October 2020 to last month, the fastest annual rate since 1990.
Inflation during the month of October alone surged 0.9%, driving the year-over-year rate above the 5.9% that economists predicted. Monthly inflation in October came in higher than it was expected, with analysts predicting it would measure in at 0.6%, according to CNBC.
The sectors which suffered the worst from inflation are staples of the average American’s life: fuel, used vehicles, and food.
“Fuel oil prices soared 12.3% for the month, part of a 59.1% increase over the past year. Energy prices overall rose 4.8% in October and are up 30% for the 12-month period.
Used vehicle prices again were a big contributor, rising 2.5% on the month and 26.4% for the year. New vehicle prices were up 1.4% and 9.8% respectively.
Food prices also showed a sizeable bounce, up 0.9% and 5.3% respectively. Within the food category, meat, poultry, fish and eggs collectively rose 1.7% for the month and 11.9% year over year.”
Economists are warning that while the U.S. has seen high inflation up until this point, things are likely going to get worse.
“I do think we’re moving into a new phase where inflation is broader and where things are going to get a little more intense,” MacroPolicy Perspectives senior economist Laura Rosner-Warburton said.
“Part of that reflects that [supply-chain] bottlenecks are not resolved going into the holiday season, when a lot of purchases get made, and that the economy is doing really well, so you have strong demand.”
Principal Global Investors chief strategist Seema Shah told CNBC, “Inflation is clearly getting worse before it gets better, while the significant rise in shelter prices is adding to concerning evidence of a broadening in inflation pressures.”
The rise in prices comes as major supply chain issues also have plagued U.S. manufacturing and retail companies.
The falling value of the dollar, meanwhile, comes on the heels of multi trillion-dollar spending bills the United States authorized as COVID aid packages, with the Democrats continuing to push for more.
Last week, President Joe Biden touted more spending bills as the answer to the financial pain Americans are feeling because of inflation. Specifically, Biden pushed his “Build Back Better” spending plan.
“I want to say very clearly: If your number one issue is the cost of living, the number one priority should be seeing Congress pass these bills. Seventeen Nobel Prize winners in economics have said — spontaneously wrote to me, together, and said this will lower inflationary pressure on the economy when we pass my bills. A new analysis from the Wall Street firm of Moody’s Analytics found that it will ease the financial burden of inflation for middle-class families.
Put another way: These will — these bills will provide families with, as my dad used to say, “just a little more breathing room.” That’s because the Build Back Better framework lowers your bills for healthcare, childcare, prescription drugs, and preschool. And families get a tax cut. That’s how you end some of the anxiety people are feeling about the economy. That’s how we give people some breathing room.”
Author: Devin Knight