WASHINGTON— According to the latest data released Wednesday, inflation increased yet again in June—9.1% over the past year, marking another 40+ year record high. The cost of everyday staples rose along with the inflation rate. The price of eggs went up 33.1%, meat 8.2%, gasoline 59.9%, used cars 7.1%, and airline travel 34.1%. This is in addition to supply shortages wreaking havoc on everyday life.
Joel Griffith, research fellow in economic policy studies at The Heritage Foundation, released the following statement on Wednesday:
“An inflation rate at 9.1% is devastating enough, but the official rate doesn’t even fully capture just how bad the situation is. Lower-income families and working Americans are being especially hard-hit by skyrocketing prices on items like food, gas, and housing.
“This administration is tone-deaf to the economic realities and the problems that they have created. Biden’s war on affordable energy production is the main culprit for both the high gas prices and skyrocketing food prices. It is growing more and more unaffordable to make it in Joe Biden’s America, as the national average gas price is still over $4.60 and food prices continue to rise. The devastating impacts of Biden’s economic policies are eating away at American’s paychecks and savings.
“Things are only going to get worse one way or another, as Biden’s economic policies are a double-edged sword. This is quite possibly the last month of lingering economic factors keeping inflation in the 8% range, which means the official CPI number could be in the 10% range by the fall. Or, inflation may slow down if gas prices—which have been a key driver of inflation—drop even further than they have in the last few days. The problem with that? Those prices are dropping not because of more supply, but because of the rising fear of recession. No matter which way you turn, Biden’s policies offer no relief.
“Americans families are paying dearly for the enormous expansions of government spending financing by the Federal Reserve money printing presses and Biden’s reckless economic policies. This inflation is proving to be the most destructive and painful tax of all.”
BACKGROUND: The Biden administration has continuously defended their failed economic policies. White House press secretary Karine Jean-Pierre has touted Biden’s economy and last week claimed that America is “stronger economically than we have been in history” under Joe Biden.
The official rental price increases are a deceptively low 5.8% despite rental costs increasing more than 25% nationally over the past year. This discrepancy is largely because BLS surveys existing rents, not new rents. This is like calculating car CPI by counting only the previously purchased cars on the road, or pretending food inflation didn’t happen if you used something in the pantry.
Mortgage rates have surged from near 2.65% at the start of 2021 to nearly 6% today, coinciding with a 27% increase in home prices—including 20% this past year. As a result, the mortgage payment on a typical home—with a 20% down payment—jumped from $1500 to more than $2350—a stunning 57% rise in monthly payments. Yet, the official increase for housing overall the past year is 5.5% with the cost of living increasing faster than wage growth, a typical American family has lost $2500 annually in purchasing power—and that’s using the official, understated numbers.