WASHINGTON–New data released Tuesday showed that inflation, as measured by the consumer price index (CPI), was 6.4 percent over the last twelve months and 0.5 percent for the month of January. These price increases follow the fourth quarter of last year which was revised upward from 1.6% to 3.2% inflation. Core CPI, which excludes food and energy, rose 0.4 percent in January and 5.6 percent over the last twelve months, almost three times the Federal Reserve’s target rate of 2.0 percent. Many consumer staples have increased significantly since January 2021, like eggs up 229.0%, butter 31.3%, flour 32.9%, gasoline 48.4%, electricity 23.5%, home heating oil 87.0%, and natural gas service 57.2%.
EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, released the following statement Tuesday on the latest data:
“For the last three years, Congress has spent trillions of dollars that we simply don’t have. The Federal Reserve created the money to finance those unprecedented levels of spending, which caused inflation. As the Federal Reserve belatedly acts to rein in inflation, it continues to work at cross- purposes to Congress, which continues to overspend.
“The more Congress overspends, the tighter the Federal Reserve will have to squeeze the private economy to bring down inflation, increasing the risk of slowing the economy even further. It is imperative that Congress begin cutting spending immediately. The explosion of deficits and debt over the last three years have put the federal budget in a precarious position where rising interest rates will automatically add an additional $300 billion to the next budget.
“This is not an issue of politics but policy. Both Republicans and Democrats have been complicit in overspending and both parties must rein in the monster they’ve created. Washington’s out-of-control spending and debt are hurting families and working Americans. Congress has a moral and fiscal obligation to stop the reckless spending that imperils American’s’ financial futures.”