by Paige Terryberry
Senior Analyst for Fiscal Policy, John Locke Foundation
Consumer prices increased 1.3% on a seasonally adjusted basis in June, according to the latest data released by the Bureau of Labor Statistics.
The annualized rate is now 9.1% before seasonal adjustment, the largest annual increase since November 1981.
The energy index rose 7.5% in June. The gasoline index alone increased 11.2% over the month and 59.9% over the year. This is a massive blow to workers’ wallets as personal vehicles still dominate most Americans’ work commute.
The electricity index rose 13.7% over the last year, making it the largest 12-month increase since April 2006.
Food prices rose 1.0% in June and 10.4% on an annual basis.
Meanwhile, real, seasonally adjusted average earnings decreased 1.0% in the last month and 3.6% over the year.
Wages are not keeping up with the rising cost of living.
Inflation comes from massive government spending, fueled by newly-created money. Everyone is feeling the squeeze, but poor and middle-class households, in particular, are pummeled by inflation.
The political elite downplay inflation, yet Americans say this is our biggest problem. Americans are tired of the smorgasbord of excuses from Washington. After all, inflation results from Washington’s reckless pursuits and excessive government spending.
Washington shows no sign of exercising fiscal restraint, and the Biden Administration refuses to admit things are going wrong. The out-of-touch Administration goes a step further, defending its agenda that would further cripple the economy.
What did Biden say regarding today’s data?
Biden called today’s data release “out of date.” He encouraged those struggling with these words: “inflation is also high in Europe, and higher in many countries than here in America.”