The US inflation rate surges to 9.1%, which already costs Americans $3,400 in lost annual income due to skyrocketing rates since President Joe Biden took office roughly 18 months ago.
Overall, the Consumer Price Index, which is a key inflation measurement, surged 9.1% year-over-year in June. The number represents a more-than-expected increase that marked its highest level since November 1981, based on a report from the Bureau of Labor Statistics on Wednesday.
US Inflation Rate
The rate equates to a loss of nearly $3,400 yearly income for the average American worker and a $6,80 reduction for families in which both parents work, said E.J. Antoni, a research fellow at The Heritage Foundation.
During an interview, Antoni said that many American families had lost money that is more than their food budget per year. He noted that he could not emphasize enough how much the situation is really crushing consumers.
He continued to say that the middle class was probably the worst-stricken and said that the White House spokesperson was saying "garbage lines" such as "the economy is in transition." Antoni added that the transition was similar to the iceberg transitioning the Titanic into a submarine, per Fox Business.
The latest report showed that energy prices, including gasoline and electricity, have skyrocketed 41.6% year over year, while food prices rose 10.4% over the last 12 months. Additionally, the energy index increase was its largest jump since 1980.
The research fellow said that core inflation, which measures the change in consumer price across all sectors except the volatile energy and food sectors, rose 5.9%. Antoni added that the situation right now is the costs finally being passed on to other businesses and finally to consumers.
On the other hand, Republican lawmakers have criticized Biden following the report Wednesday for the Democrat's agenda, which they blamed for the high consumer prices. In a statement, Kevin Brady, a ranking member of the House Ways and Means Committee, said that a year ago this week, Biden's reckless stimulus checks flooded the economy, leading to this result.
Highest Numbers
According to CNBC, on a monthly view, headline CPI rose 1.3%, and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%. Experts are concerned that the numbers seem to counter the narrative that inflation may be peaking, as the gains were based across a variety of categories.
A corporate economist at Navy Federal Credit Union, Robert Frick, said that CPI delivered another shock to Americans that is as painful as June's higher number. He said that while CPI's spike was led by energy and food prices, domestic goods and services costs continue to mount, including shelter, autos, and apparel.
The federal government has continued to conduct solutions that they believe would address rising inflation in the United States. However, whatever they do, the rate only continues to climb with no clear end in sight. A co-founder and economist at research firm Monetary Policy Analytics, Derek Tang, said that it would be a long and tough road ahead, The Hill reported.
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