Heritage Economist: Latest Inflation Data Is a Reminder Why Debt Ceiling Fight Matters

Heritage Economist: Latest Inflation Data Is a Reminder Why Debt Ceiling Fight Matters

May 10, 2023 1 min read

WASHINGTON—The Bureau of Labor Statistics today released new figures showing the consumer price index (CPI) rose 0.4% in April and 4.9% over the last 12 months, more than twice the Federal Reserve’s 2% target. Since President Biden took office, the CPI has risen 15.3%.

Heritage Foundation economist and research fellow EJ Antoni made the following statement on these latest numbers:

“American families continue to suffer the pains of inflation because the government obstinately continues with its misguided policies, chiefly excessive spending. While inflation has come down from a 40-year high, it is now accelerating, and Americans are hurting financially.

“Since Biden took office, the average family has seen its weekly income rise by $200, nearly 10 percent, but prices have risen more than 15 percent in that same time. Consequently, the family’s larger income buys $100 less in real terms.

“Additionally, trillions of dollars in government borrowing have driven up interest rates, which has increased borrowing costs for families on everything from mortgages to auto loans to credit cards. This additional cost is a further burden on average families, who have effectively lost $7,100 in purchasing power since Biden took office.

“The debt ceiling fight is a tremendous opportunity for Congress to fight for American families by reining in the runaway spending that is fueling inflation. Increasing the debt ceiling without reducing spending imperils both federal and family budgets. Today’s spending levels are not sustainable and today’s inflation levels are not tolerable.”

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