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New inflation data released on Tuesday showed prices rose more than expected in August, putting more pressure on Americans, many of whom are already struggling to make ends meet.
Some economists and lawmakers were quick to slam President Joe Biden after the data was released, and the Dow fell 800 points in response.
EJ Antoni, an economist at the Heritage Foundation, said the inflation rate had risen “nearly six times what it was when Biden took office.”
“The reality is that American families are still losing ground because of his politics,” he said. “People are obviously worse off today than when Biden became president. Real wages fell 5.5%, or the annual equivalent of $3,000 for the average American. Meanwhile, home affordability plummeted 35%, monthly savings plummeted 75%, and credit card debt rose 22%. Americans have been financially crushed by the Swamp’s monetary malpractice and Washington’s fiscal irresponsibility.
Notably, the Bureau of Labor Statistics Consumer Price Index highlighted that a range of goods and services have become more expensive. These increases were hidden due to a sharp drop in gasoline prices that pushed the overall price index up a slight 0.1% increase for the month of August.
Food prices, for example, continued to rise at an aggressive pace.
“The home food index has risen 13.5% over the past 12 months, the largest 12-month increase since the period ending March 1979,” the BLS said. “The Other Home Foods Index was up 16.7% and the Cereals and Bakery Products Index was up 16.4% on the year. showed increases ranging from 9.4% (fruits and vegetables) to 16.2% (dairy and related products).
Stocks fell as markets opened on inflation news.
Biden released a statement Tuesday morning saying he intended to “celebrate” the passage of the Cut Inflation Act at an event Tuesday afternoon.
However, Republican lawmakers pushed back, saying the latest inflation numbers aren’t worth celebrating.
“While the White House will no doubt celebrate today’s inflation report, families are still hurting,” said U.S. Sen. Rick Scott, R-Fla. “Food prices have risen since Biden took office and continue to rise.
“Families in my state and across the country don’t want consolation prizes, they want lower prizes,” he added.
Lawmakers also point out that inflation has far exceeded wages. New Jersey-based Provident Bank released survey data over the summer showing that 83% of Americans are cutting spending to keep up with inflation.
“In Wyoming and across the country, families are cutting back on spending and worrying about paying their bills,” said U.S. Sen. John Barasso, R-Wyo. “Yet later today, the White House plans to celebrate the reckless spending policies and tax hikes that have caused this pain and suffering. The president and his allies are out of touch with working families.
Antoni also pointed the finger at the Federal Reserve.
“While the Federal Reserve is a belated start to do its job of reducing money creation and allowing interest rates to rise, it is working against the grain of Congress and the President, who continue to spend and borrow excessively.” , Antoni said. “To avoid a deepening recession, our government and monetary leaders must end reckless spending, borrowing, and money printing, while enacting policies that will unleash America’s energy production.”