Inflation after one year of President Biden has exceeded expectations and reached levels not seen since the Carter administration. The Department of Labor announced this week that the consumer price index has risen by 7.5% compared to prices one year ago. This is even worse than the 7.2% Dow Jones estimate and it represents the worst surge in inflation experienced by the United States since 1982, with no end in sight.
Inflation hits 40 year high
The dramatic spike in the consumer price index began at the end of January 2021 and continued to get worse through the rest of the year.
Inflation like this hasn’t been seen for 40 years. Consumer prices began to rise somewhat with the arrival of Covid, but the increases were relatively modest until Biden took office.
The consumer price index measures a collection of everyday consumer goods, meaning that the 7.5% increase is being felt by nearly everyone in the country.
The most brutal beatings experienced by consumers this year happened at the pump, where gas prices have risen by more than 45% compared to last year.
The White House is well aware of the painful rise in gas prices and has made several feeble efforts to address the situation, without any success.
Biden asked the OPEC nations and Russia to harm their own economies by drastically increasing oil production with no incentive other than the prospect of saving Biden’s collapsing approval ratings.
Consumers spending more every month
This was understandably rejected, so Biden proceeded to employ the Strategic Petroleum Reserve, a reserve which is intended for emergency use.
Biden felt that his declining popularity was an emergency, so in November he announced that he would release 50 million barrels of oil. This had no impact on prices.
Of course, gas prices haven’t been a problem for consumers who haven’t been able to buy cars; new cars have become steadily more expensive but used vehicles have seen a dramatic 40% increase.
Food and housing prices haven’t jumped as dramatically but they are by no means good. Meat in particular has become 13.6% more expensive.
The average household has been spending an extra $250 per month due to inflation according to an analysis carried out by the Wall Street Journal.
All of this inflation has been more than enough to cancel out wage increases, and any Americans who are earning more this year can expect to see no real difference after paying for their everyday expenses.
