Every single time you shop anywhere, inflation is glaringly obvious as prices are not what they were even a year ago, and the further into Joe Biden’s presidency America goes, the worse it gets.
Sadly, the average household in the United States is paying a whopping $717 more per month for expenses than they were in 2021, according to the Joint Economic Committee (JEC) Republicans.
According to the Consumer Price Index, prices have climbed 8.5 percent – the supply chain being in tatters thanks to covid lockdowns, contributing the bulk of the price hikes for commodities – housing, healthcare and cars also shot up in price.
In January 2021, inflation was sitting at 1.4 percent and in comparison, to prices in July 2022, the JEC Republicans found that even though inflation slowed between June and July of 2022, compared to a year and a half before, the situation has become much worse.
“While prices did not change from June to July 2022, prices increased 13.3 percent from January 2021 to July 2022, costing the average American household $717 in July 2022 alone,” their report said.
Fox Business noted that even if inflation suddenly stopped rising along with prices, the average American household has already forked out an additional $8,607 because of the already existing inflation.
Of course, those with the lowest incomes or those on fixed incomes, are the first to suffer – suddenly almost an extra $10,000 is needed every year just to scrape by – a number not easy to come by when you are already stretched to the limits.
In July, according to the CPI report, prices for groceries and other staples went up by 1.3 percent and the labor market is suffering too, as increased wages are quickly sucked up by inflation, making no one any better off.
RSM chief economist Joe Brusuelas said, “While the boost to overall economic prospects is welcome, easing inflation will ring hollow with many down-market consumers whose wages are falling in real terms.”
Energy prices began to decline in July, but they are still up 32.9 percent from the previous year and gas prices, despite dropping by 7.7 percent, are still up by 44.9 percent from July 2021.
Because Democrats never have any really good ideas, they have now passed the “Inflation Reduction Act” that, according to experts, will do little to nothing to curb inflation and will in fact, make it far worse.
Of course, Democrats would think it was a good idea to try to spend their way out of poverty – that’s socialism after all. The damage will also take a very long time to undo.
“Inflation will only decline at a painfully slow pace. Food and energy inflation are wild cards. Although inflation should peak soon, the broadening and stickiness of price pressures imply headline CPI will only fall to 6.5 percent this year, before the recession accelerates the decline in 2023.” According to Seema Shah, chief global strategist at Principal Global Investors.