‘It Is Difficult To Overstate The Extent to Which Inflation Is Devastating American Families,’ Economist Says
Samantha Aschieris /
“Inflation is still increasing at approximately twice the Federal Reserve‘s target rate, meaning ordinary Americans are getting no relief after 2 1/2 years of runaway prices,” the chief executive officer of the Job Creators Network said after a government agency reported that inflation ticked up last month.
The U.S. Bureau of Labor Statistics reported Thursday that the consumer price index, a key measure of inflation, rose 0.4% in September.
“While inflation has moderated compared to the beginning of this year, it’s important to remember that since President Biden took office, prices have increased by around 20%, reducing Americans’ real wages and living standards,” Alfredo Ortiz, president and chief executive officer of the Job Creators Network, said in a Thursday statement. “Due to this Bidenflation, ordinary Americans are poorer.”
“The reason for this cost-of-living crisis is reckless spending by the Biden administration and Congressional Democrats that have led to too many dollars chasing too few goods, bidding up prices and diluting the currency already in existence,” Ortiz said, adding:
This year’s deficit is a projected $1.7 trillion, one of the largest in the nation’s history and a ridiculous number for an economy running at full capacity. It comes on top of the several trillion dollars of Democrat spending on major bills in the first two years of Biden’s presidency.
In September, the food index rose 0.2%, the energy index rose 1.5%, the fuel oil index rose 8.5%, and the electricity index rose 1.3% while the utility (piped) gas service index decreased 1.9%, the used cars and trucks index decreased 2.5%, the medical care commodities index decreased 0.3%, and the apparel index decreased 0.8%, according to the U.S. Bureau of Labor Statistics.
“The September CPI [consumer price index] report came in hot, as forecasted, with prices rising an average of 0.4% in September alone and 3.7% over the last year,” EJ Antoni, a research fellow for regional economics in the Center for Data Analysis at The Heritage Foundation, told The Daily Signal in an emailed statement. “Excluding the more volatile food and energy components, prices rose 4.1% over the last year. For context, that’s more than twice the Federal Reserve’s 2.0% target.” (The Daily Signal is the news outlet of The Heritage Foundation.)
“It is difficult to overstate the extent to which inflation is devastating American families. The average American worker loses more today through the hidden tax of inflation than from federal income taxes,” Antoni said. “For the typical American family, inflation has outpaced earnings so quickly under President Joe Biden that real (inflation-adjusted) earnings have fallen about $5,400 under his watch.”
Biden also weighed in on Thursday’s report, saying in a statement, “This morning’s report shows core inflation fell to its lowest level in two years.”
“Overall inflation is down by 60% from its peak at a time when unemployment has remained below 4% for 20 months in a row and the share of working-age Americans in the workforce is the highest in 20 years,” Biden said. “That’s Bidenomics in action.”
“I’ll continue to fight to build an economy from the middle out and bottom up—even as Republicans in Congress make reckless threats to weaken our economy, prioritize tax cuts for the wealthy and large corporations, and push for deep cuts to programs that are essential for hardworking Americans and seniors,” Biden added.
In September, the Bureau of Labor Statistics reported that inflation ticked up 0.6% in August.
The food index rose 0.2% in August, the gasoline (all types) index rose 10.6%, the energy commodities index rose 10.5%, the fuel oil index rose 9.1%, and the energy index rose 5.6%, while the commodities less food and energy commodities index decreased 0.1% and the used cars and trucks index decreased 1.2%, according to the bureau.
The bureau will release the October consumer price index report on Nov. 14 at 8:30 a.m.
This is a breaking story and may be updated.
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