WASHINGTON—New numbers released Friday show that American families paid 1.1% more for goods and services but only received 0.2% more for the price increases, equating to an annualized inflation rate of 11.4%. Additionally, the Federal Reserve’s preferred inflation metric—the Personal Consumption Expenditures (PCE) price index—spiked to a 40-year high at 4.6 percentage points above the 2% inflation target, with prices rising nearly twice as fast as incomes. PCE measures how much consumers are spending, and the price index measures the costs of what consumers are buying.
EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, released the following statement Friday on the latest data:
“The economic numbers continue to show that America is in decline because our government is spending money it doesn’t have—enabled by the Federal Reserve’s printing money at a breakneck pace.
“Real disposable personal income fell 0.4% in March, an annualized rate of 4.9% a year, and personal savings are collapsing in the wake of higher prices. People are demonstrably poorer under this administration.
“Americans have lost the purchasing power of their wages and been made poorer by this administration’s fiscal policies that have spurred price increases not seen in 40 years. Blocking access to abundant natural resources for ideological reasons and siding with union bosses over independent workers are examples of how this administration is hamstringing the economy. Right now, there’s no relief in sight.”