After a highly anticipated inflation report was released on Tuesday, it quickly went viral, prompting the White House to immediately begin damage management.
An alarming headline inflation rate created widespread fear within the White House as Biden's communications staff attempted to come up with a means to obscure the underlying reality that the majority of Americans face on a daily basis.
The press secretary for the White House, Karine Jean-Pierre, issued a warning to the media on Monday about the "highly elevated" inflation rates for June, one day before the data was officially released.
In the meantime, as a result of both Biden's energy policies and a protracted military situation in Ukraine, the price of a gallon of gas broke beyond the $5 threshold for the first time ever in the month of June. As of Tuesday, they had dropped to $4.66, which is still high but represents a significant drop from their levels in June.
The national average price of a gallon of gasoline was $4.48 in May, but by the end of June, it had risen to $4.92, representing an increase of nearly 10 percent. According to the projection of one government official, the surge will lead to a month-over-month increase in headline inflation of approximately 0.5 percentage points in June.
The CPI reading that is being focused on by the White House is the "core" inflation number, which excludes the effects of cyclical price changes in food and energy. How convenient, especially considering that food and gas are the most widely used necessities all around the world.
While simultaneously assigning blame for the economic disaster to Vladimir Putin, the administration of Joe Biden has shown a strong interest in drawing attention to the fact that inflation is high not only in the United States but also in other wealthy countries across the world.
The president of the United States, Joe Biden, has referred to the occurrence as "Putin's price hike," which is a reference to Vladimir Putin, the leader of Russia.
On Tuesday, an official from the White House described the levels of inflation that are being experienced in other countries and referred to the increase in prices as a "global challenge." The government official reported that the headline inflation rate in Canada was 7.7 percent, while it was 8.6 percent in Europe and 9.1 percent in the United Kingdom.
Even though they have warned reporters to brace themselves for a high inflation reading in June and have highlighted the considerations that might make the reading higher than current market situation, top officials at the White House are not yet ready to say that inflation has reached its maximum level.
One official stated on Tuesday that it is "a little early" to claim that the United States has officially reached a peak in terms of energy prices. However, the source did add that prices have decreased over the course of the past month, which is a nice development.
The Federal Reserve has been very aggressive in its efforts to raise interest rates as a response to the soaring inflation. After the meeting in June, when it was clear that inflation had not peaked in May, the central bank increased interest rates by three-fourths of a percentage point, the most aggressive increase since 1994. This was the result of the meeting that took place after it became apparent that inflation had not peaked in May.
In spite of this, the fundamentals of supply and demand can be comprehended by virtually anyone who has a passing interest in economics. It's hardly rocket science that when you limit supply, prices go through the roof but when you flood the market with product, prices go down.
What the Democrats have done is print trillions upon trillions of dollars for proxy wars and social welfare expenditures, which has resulted in a decrease in the value of the dollar while simultaneously producing tremendous inflation. Most aspects of the economy would fare better if there was an instant halt to expenditure by the federal government; nevertheless, we are all aware that this cannot occur.
The preceding is a summary of an article that originally appeared on American Examiner News.