WASHINGTON—New data released Friday showed personal income increased just 0.3% in December, falling behind record inflation. The personal consumption expenditure (PCE) price index rose another 0.4% in December, and 5.8% in 2021, the highest jump since 1982. Meanwhile, today’s data also showed that American families curtailed their spending in December—dropping 0.6% as prices surged.
Joel Griffith, research fellow with Heritage’s Roe Institute for Economic Policy Studies, released the following statement Friday:
“Biden administration policies, from burdensome mandates and regulations to reckless federal spending and borrowing, are largely to blame for these dramatic price hikes in housing, rent, vehicles, gasolines and other staples that is putting this painful squeeze on Americans.
“What Americans don’t need are any more tax-and-spend packages out of Washington, whether in the form of the disastrous Build Back Better Act or even chunks of it. These measures only prop up big-government socialist policies while exacerbating the problem of price increases, labor shortages, and supply chain disruptions.
“Policy reforms in housing, labor, trade, food, and energy could ease this record inflation without artificially distorting markets. It’s time for our lawmakers to address inflation, provide Americans with relief from historic economic hardship, and help them keep more of their hard-earned money.”
For more on how we can fight inflation, read Inflation: Policymakers Should Stop Driving It and Start Fighting It.