Inflation has been rising faster than most people can keep up with, and of course, the Biden administration continues to fluff it off.
The current administration loves to gaslight the American people by saying that the reason for the skyrocketing prices in the U.S. all stems from the Russia Ukraine conflict.
However, anyone with a basic grasp of economics knows that is far from the truth.
Now, the latest numbers have been released of how high inflation has reached and I am sure that this isn’t even the most accurate number.
According to a study released on Wednesday by the Bureau of Labor Statistics, consumers paid significantly higher prices in June for a wide range of commodities as inflation continued to hold its ground against a faltering US economy.
The consumer price index, a comprehensive measurement of prices for goods and services used in daily life, increased by 9.1% from a year earlier, exceeding the Dow Jones forecast of 8.8%. Since December 1981, that month saw the highest rate of inflation on record.
So-called core CPI rose 5.9 percent as opposed to the estimated 5.7 percent, excluding volatile food and energy prices.
In comparison to the respective predictions of 1.1 percent and 0.5 percent, the headline and core CPI increased by 1.3 and 0.7 percent, respectively, on a monthly basis.
Together, the data appeared to refute the idea that inflation may be reaching a high because the rises were spread over a number of different categories.
Energy prices increased 7.5 percent in one month and 41.6 percent over a full year. The food index grew by 1%, while housing expenses, which account for nearly one-third of the CPI, rose by 0.6 % for the month and 5.6 % annually. Food prices at home increased for the sixth consecutive month.
According to the BLS, June saw a 0.8 percent increase in rental prices, which is the highest monthly increase since April 1986.
Following the release of the report, government bond yields rose and stock market futures declined.
Gasoline costs, which rose 11.2 percent for the month and just under 60 percent over the previous year, were a major contributor to the spike in inflation. The price of electricity increased by 1.7% and by 13.7%, respectively. Prices for new and used cars increased by 0.7 percent and 1.6 percent, respectively.
The greatest monthly change ever recorded for that sector in statistics dating back to 1995, dental services jumped by 1.9 percent, driving a 0.7 percent increase in medical care expenditures for the month.
One of the few industries that saw a decrease in June was airline fares, which were still up 34.1 percent from a year earlier despite the 1.8 percent drop. The category for meat, poultry, fish, and eggs similarly experienced a monthly decline of 0.4 percent but an annual increase of 11.7 percent.
For customers who have been struggling with skyrocketing prices for everything from used automobiles to bacon and eggs to airline tickets, the rises represented another challenging month.
A number of factors, including clogged supply chains, an excessive preference for goods over services, and trillions of dollars in Covid-related stimulus spending, which has left consumers flush with cash and forced them to pay the highest prices since the early Reagan years, have made it difficult for policymakers to find solutions.
The benchmark short-term borrowing costs have increased by 1.5 percentage points as a result of a series of interest rate rises implemented by Federal Reserve authorities. The central bank is anticipated to keep raising rates until inflation approaches its longer-term goal rate of 2%.
Although inflation was already sharply rising before the attack in February, White House officials have attributed the increase in prices on Russia’s invasion of Ukraine. Joe Biden, the vice president, has urged gas station owners to cut their pricing.
The government and top Democrats have also accused firms of being “greedy” for exploiting the outbreak as a reason to boost costs. However, the overall growth in corporate profits since the second quarter of 2021, when inflation started to take hold, has only been 1.3 percent.
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