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Life in America has become dramatically more expensive under President Joe Biden’s administration, with the least able to cope with rising prices bearing the brunt.
According to the Department of Labor, inflation — which has been steadily rising for months — hit a new 40-year high in January, spiking 7.5 percent, further wiping out wage gains and higher take-home pay tens of millions of American earners experienced during former President Donald Trump’s term.
“It’s the highest spike in consumer goods prices since February 1982, and a certain blow to President Joe Biden’s standing with American voters less than a year before the crucial midterm elections,” The Daily Mail reported.
“Even members of his own party are distancing themselves from the economic disaster, with West Virginia Senator Joe Manchin taking a veiled swipe at the White House for seeming to ‘think that spending trillions more of taxpayers’ money will cure our problems,'” the outlet continued.
The latest inflation data took its toll on Wall Street, with all the major indices tumbling Thursday following the Labor Dept. report.
CNBC reported that the level of inflation was not just high but actually surpassed economists’ projections, noting that virtually every major sector was affected:
On a percentage basis, fuel oil rose the most in January, surging 9.5% as part of a 46.5% year-over-year increase. Energy costs overall were up 0.9% for the month and 27% for the year.
Vehicle costs, which have been one of the biggest inflation contributors since they began surging higher in the spring of 2021, were flat for new models and up 1.5% for used cars and trucks in January. The two categories have posted respective increases of 12.2% and 40.5% over the past 12 months.
Shelter costs, which make up about one-third of the total CPI number, increased 0.3% on the month, which is the smallest gain since August 2021 and slightly below December’s rise. Still, the category is up 4.4% over the past year and could keep inflation readings elevated in the future.
Food costs jumped 0.9% for the month and are up 7% over the past year.
The higher food and housing prices “underlines our view that a rapid cyclical acceleration in inflation is underway and, with labor market conditions exceptionally tight, it is unlikely to abate any time soon,” wrote Andrew Hunter, senior U.S. economist at Capital Economics, CNBC noted.
“While we still expect more favorable base effects and a partial easing of supply shortages to push core inflation lower this year, this suggests it will remain well above the Fed’s target for some time,” he added.
According to Fox Business, the dismal inflation report brought an admission of sorts from President Biden.
“On higher prices, we have been using every tool at our disposal, and while today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge,” Biden said in a statement.
“While today’s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022,” Biden added.
Of course, the Biden administration said for months as prices continued to rise that inflation was “transitory.”
In October, nearly two-thirds of respondents in a Morning Consult/Politico survey blamed Biden for inflation.
The survey “revealed that 40% of registered voters see the Biden administration as very responsible for the country’s high inflation, while 22% said his policies are somewhat responsible. A total of 28% said the administration is not too responsible or bears no blame for the higher prices,” the Washington Examiner reported at the time.
In late January, Biden snapped at Fox News White House correspondent Peter Doocy after he asked if the president thought that ever-rising inflation would be a “political liability” come the November midterms.
“No, that’s a great asset. More inflation. What a stupid son of a bitch,” Biden — who may have thought that his microphone was off — said in response.
