Staff Reports
Despite President Joe Biden’s insistence that inflation is decreasing due to his economic policies like “Build Back Better” and “Bidenomics,” the prices of goods and services are still more than three percent higher than a year ago. The Consumer Price Index (CPI) has soared to a “new all-time high” of 314.069, according to the U.S. Bureau of Labor Statistics (BLS) May report.
The report reveals that there has been a 3.3 percent increase in prices over the past year, with shelter costs jumping by 5.4 percent, motor vehicle insurance rising by 20.3 percent, and medical care increasing by 3.1 percent. Core CPI inflation, which excludes volatile food and energy prices, has also surged by 3.4 percent over the past 12 months, far exceeding the Federal Reserve’s goal of just 2.0 percent.
Inflation comes in cooler than expected for May, w/ CPI up 3.3% Y/Y and flat M/M while core rose 3.4% Y/Y and 0.2% M/M, but a slower increase is still an increase and prices set a new record high: pic.twitter.com/N6EuXZJCdn
— E.J. Antoni, Ph.D. (@RealEJAntoni) June 12, 2024
Furthermore, the cost of goods and services has significantly risen since Biden took office in January 2021. Gas prices have skyrocketed by 55.3 percent, groceries by 21.2 percent, and eating out by 22.2 percent. This surge in prices has resulted in a decline of real average weekly earnings by 3.9 percent, making it increasingly challenging for Americans to manage their finances.
The persistently high inflation, which surpasses the Federal Reserve’s target rate, indicates that Fed Chairman Jerome Powell’s efforts to control inflation have not been successful. Despite the Fed’s upcoming decision on interest rates, the promised interest rate cuts in 2024 have become a testament to the economic challenges under the Biden administration.
Reflecting on the recent report, Alfredo Ortiz, CEO of Job Creators Network, highlighted that the soaring inflation is causing significant distress for small business owners and ordinary Americans. He emphasized that the Democratic spin on the economy does not resonate with voters, and the only solution to combat inflation and elevate living standards is by electing conservative candidates who will implement responsible spending and pro-energy policies.
