Houston we have a problem: Inflation worse than expected. 7.9% increase
WASHINGTON D.C. – Despite repeated claims from Washinton that inflation is temporary, or that it is good for the country, not kidding.. Nancy Pelosi actually said that, the monthly report that shows just how much pain consumers are feeling in their pocketbooks is out, and it is a stark reminder that elections have consequences.
The Labor Department reports that the costs for gas, food, and housing, consumer inflation jumped 7.9% over the past year, the sharpest spike since 1982 and likely only the beginning of worsening financial impacts, as the numbers presented reflect the climate before the invasion of Ukraine by Russia.
Even outlets like CNBC are calling out the administration for their blame-shifting and excuses for the current financial situation that Americans are facing.
It does not take a financial background to know that when you go to buy groceries or fill up your vehicle, you are paying more and in some instances, you are paying a lot more.
Ronald Regan once said, “Inflation is as violent as a mugger, as frightening as an armed robber, and as deadly as a hitman.”
And yet, I am old enough to remember a few days ago, when White House Press Secretary Jen Psaki stated that the data shows that month to month – inflation numbers are going down.
The government’s report Thursday also showed that inflation rose 0.8% from January to February, up from the 0.6% increase from December to January.
Prices for gas, food and housing — which are necessary rather than discretionary spending — drove the February price increases.
February prices rose 0.8%, adjusted for seasonal swings, more than in January. Gasoline prices alone rose 6.6% and contributed nearly a third of the overall inflation increase.
Food prices rose 1% last month, the largest monthly increase since April 2020.
About a third of the 24-cent a gallon increase in the price of regular gas occurred in the final five days of the month, after Russia invaded Ukraine, according to data collected for AAA by the Oil Price Information Service. But prices have soared since then, with the price of a gallon of regular gas rising by 71 cents or about 20%, just since the end of February to stand at $4.36 a gallon on Thursday, so look for inflation to continue in the months to come.
The index for meats, poultry, fish, and eggs increased 1.2% in February. The costs for cereals and bakery products rose 1.1% and the index for other food at home increased 0.8 percent over the month.
The cost for Americans to cook at home rose 8.6% over the last 12 months, the largest 12-month increase since the period ending April 1981. The cost for meats, poultry, fish, and
eggs increased 13.0% over the last year as the index for beef rose 16.2%
Don’t look for the price of food to go down any time soon. Russia and Ukraine are major exporters of wheat and the ingredients needed for fertilizer. The invasion of Ukraine will only compound what was already in motion.
The White House knows this and they are preparing their excuses for even worse numbers next month.
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