Heritage Economist: The American People Continue to Feel the Pain of Inflation

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Heritage Economist: The American People Continue to Feel the Pain of Inflation

May 15, 2024 1 min read

WASHINGTON—The Bureau of Labor Statistics released data Wednesday morning showing the consumer price index (CPI) rose 0.3% in the month of April and 3.4% in the 12 months ending in April. Monthly core inflation, which excludes food and energy, was 0.3% while annual core inflation was 3.6%.

Under President Biden, consumer prices have risen an average of 19.3%, but many consumer staples have seen much larger price increases like eggs up 40.9%, electricity 29.3%, gasoline 46.3%, car insurance 51.7%, baby food 30.0%, and flour 38.3%.

Heritage Foundation public finance economist EJ Antoni issued the following statement in reaction:

“Every month, these inflation reports tell the bureaucrats in DC what the middle class already knows: prices are still rising, and Americans are becoming demonstrably poorer from the hidden tax of inflation.

 

“The average worker’s inflation-adjusted weekly paycheck has now fallen 4.4% under Biden because prices have risen so much faster than wages following the implementation of his policies. Additionally, his spend-borrow-print money agenda has also resulted in much higher interest rates on everything from mortgages to credit cards.

 

“For the typical American family, this deadly combination of declining purchasing power and higher financing costs has been the equivalent of reducing their annual income by almost $8,100 compared to when Biden took office. Furthermore, the monthly mortgage payment on a median price home has increased 114.5% under this president. Bidenomics means paying an extra $13,300 per year, for 30 years, for the same house.

 

“Instead of accepting responsibility for the results of his agenda, the president has outright lied in multiple interviews, claiming inflation was already at a 40-year high of 9% when he took office. In reality, his own administration’s data show inflation was 1.4% at that time. Biden’s faulty memory aside, inflation will remain elevated so long as the big spenders have control of DC.”

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