Rising prices are gouging a hole in Americans’ wallets.
Days after oil prices hit their highest levels in three years, a new report shows inflation at its highest level in 13 years.
Consumer prices rose by 5.4 percent for the year ending September, according to data released Wednesday by the Bureau of Labor Statistics, the Washington Examiner reported.
The number reflected the steepest inflation since 2008. Forecasters were expecting a 5.3 percent increase.
“Consumer prices continue to rise, particularly as demand driven by people returning to post-vaccination life outstrips supply that is increasingly constrained by logistics and labor shortages,” said Brian Crosby of Traub Capital Partners, according to Fox Business. “We see it every day.”
Going forward, things could get even worse.
“While some of the so-called transitory factors like used car prices, airfares, and apparel continue to ease after sharp run-ups in earlier months, inflation is broadening out,” said Greg McBride, a senior analyst at Bankrate.
“Food and shelter increases together contributed more than half of the seasonally adjusted increase in the [consumer price index]. With home prices soaring and rents surging, this may just be the tip of the iceberg.”
The @JoeBiden economy is devastating for the American People. Inflation is taxation.
And Biden wants to spend 5 TRILLION more, which will of course make this crisis much, much worse. https://t.co/SVwZGgwwtE
— Sean Parnell (@SeanParnellUSA) October 13, 2021
“Been to the grocery lately? … Suddenly, everything costs more. Eggs, milk, coffee, mustard, et cetera, et cetera, et cetera. These are not luxury items. This is not a trip to St. Bart’s. These are things you buy every week and you have to buy,” he said.
“The question is, are your wages rising as fast as your costs? Well, let’s see. Vegetable oil is up 60 percent, so probably not. And that means you’re getting poorer, whether you realize it or not. But that’s what inflation does. It causes poverty.
“So because we can prove that the population of the United States is getting poorer by the day, you’d think the Biden administration would be actively concerned about this and working to make it better. But they’re doing the opposite. They’re actively making it much worse. And here’s how they’re doing it: by spending,” he added.
In July, President Biden dismissed inflation concerns.
Today, data shows inflation spiking at the fastest rate in 30 years.
Biden is too incompetent to solve this problem. pic.twitter.com/Xh6LPP8p3t
— Tom Cotton (@TomCottonAR) October 13, 2021
CNBC was pessimistic as it looked ahead to the future of energy prices, which take on greater importance for many Americans as cold weather begins.
“There is an unusual coincidence of much higher oil, natural gas and coal prices, combined with other rising commodities and supply chain disruptions. That perfect storm of shortages and higher prices begs the question of whether the economy could go into a serious tailspin or even a recession,” the outlet reported.
“Economists say, for now, the jump in prices is not the type of oil shock that will turn U.S. growth negative, but there will be economic consequences of higher energy costs.”
A year ago we were energy independent, a net exporter, and a gallon of gas was 2 bucks and change. After less than a year of a war on fuel producers here and giveaways to Russia, all those gains are reversed. The surprise is how quickly everything changed. https://t.co/JD3dF4mBjg
— David Asman (@DavidAsmanfox) October 12, 2021
“We do have a rise in energy that will be a drag on fourth-quarter growth,” JPMorgan chief economist Bruce Kasman said. “It’s not at a point where we’re warning about recession, but it’s at the point where you have to worry about it hurting growth in a material way.”
Oil prices are up more than 65 percent this year. Natural gas prices have risen more than 112 percent.
This article appeared originally on The Western Journal.
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