The newly-released Consumer Price Index (CPI) report, the main measurement of the health of the US economy, indicates inflation has risen again to levels higher than expected, reaching another 40-year high.
The rise in inflation has plagued Democrats during their time in power, as virtually all Americans have shouldered the brunt of rapidly-rising prices in normal household goods. The latest reports show, under the Biden administration, Americans have realized a 6.6% increase in core prices (excluding energy) since this time last year.
- Housing Costs: The greatest contributor to the CPI’s rise (makes up about a third) is housing. This rose 0.7% for a second month.
- Renting: Renters have seen a 6.7% annual increase
- Food: The cost of buying groceries increased 0.8% for a second month. In total, the cost of buying groceries is 11.2% higher than last year.
- Other Increases:
The overall CPI resides at an 8.2% increase in prices. The report says shelter, food, and medical expenses comprised added to the increase, while gas and used car purchases declined.
The news will likely lead to increased interest rates by the end of the year. Analysts predict the Fed will, during their November policy meeting, likely decide to increase interest rates by an additional.75%. If this is to happen, it would be the fifth time interest rates rose by that amount.
The CPI reports highlight just how much inflation is hurting Americans and wiping out any rise in salaries. This also indicates Americans will be forced to tap into savings and use credit cards to keep pace with inflationary pressures that have occurred while Biden and Democrats have held office.
Democratic politicians and left-leaning news outlets have been quick to point out, while inflation is at an astounding 40-year high, employment numbers are still comparatively low, and businesses seem to be giving employees modest raises.