(RightIsRight.co) – Most Americans felt their purse strings tighten as prices for consumer items like food, gas, household furnishings and shelter rose over the past year. The latest report from the Department of Labor (DOL) confirmed these feelings, showing that the inflation felt under the Biden administration and COVID-19 pandemic is quite real.
On Tuesday, September 14, the DOL released its Consumer Price Index Summary, sharing that all items in the index, such as food, energy, vehicles and medical care, went up 5.3% over the last 12 months before seasonal adjustment. August’s numbers only rose 0.3% from July, which is less than July’s 0.4% jump from June.
Johns Hopkins economist Steve Hanke shared the news on Twitter:
#BREAKING: The Consumer Price Index for August 2021 is up 5.3% since last year. This #inflation isn't "transitory." Thanks to a 32.7% increase in M2 since Feb. 2020, average inflation of 4.8% inflation from 2022Q3-2024Q4 is baked in the cake. https://t.co/bf6s5Mn2Qd
— Steve Hanke (@steve_hanke) September 14, 2021
There are certain commodities that stand out far above the rest. For example, while used vehicles prices fell 1.5% in August, they’re still 31.9% above last summer’s levels.
As President Joe Biden and Democrats work on their massive $3.5-trillion infrastructure plan, many Americans wonder how increased government spending and higher taxes will impact inflation. Hopefully, this administration will choose to provide real answers to everyday Americans facing budgeting challenges as prices continue to rise due to overzealous government spending.
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