Inflation Hits 40-Year High, Creating Problems For Biden
Inflation in the United States has reached its highest level since 1982, according to new Consumer Price Index data released on Friday by the Bureau of Labor Statistics. The news could spell political problems for President Joe Biden, who is already facing sagging opinion polls.
“In November, the Consumer Price Index for All Urban Consumers rose 0.8 percent on a seasonally adjusted basis; rising 6.8 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.5 percent in November (SA); up 4.9 percent over the year (NSA),” the CPI report states.
Among the categories monitored by CPI, which tracks changes in the prices of goods and commodities, energy costs saw the most substantial spike over the last year, jumping more than 30% on average. Food and other items had more modest increases, although they are still significantly higher than at this point in 2020.
The price of purchasing a home also surged by a whopping 18.6% in a mere 12 months, the White House noted in September.
Government officials say that the rise in CPI is directly related to the economic resurgence amid the Covid-19 pandemic, which is showing no signs of abating. One major factor affecting driving up prices for consumers is historically high demand. The other is the global supply chain snarl that has delayed the delivery of products that are manufactured overseas.
Unfortunately, much like the coronavirus, rocketing inflation is not going away anytime soon, according to individuals in charge of American monetary policy.
“Generally, the higher prices we’re seeing are related to the supply-and-demand imbalances that can be traced directly back to the pandemic and the reopening of the economy, but it’s also the case that price increases have spread much more broadly in the recent few months,” Federal Reserve Chairman Jerome Powell said during congressional testimony late last month. “I think the risk of higher inflation has increased.”
The good news is that wages are on an upward trend as employers compete for talent.