The U.S. Department of Labor announced Wednesday morning that the Consumer Price Index (CPI) increased .5 percent in July after rising .9 percent in June and tying last month's year-over-year increase of 5.4 percent — the largest jump since 2008.
BREAKING: Consumer price index rises 0.5% in July, up 5.4% year-over-year. pic.twitter.com/lGHAITXFpn
— Cheddar News ?? (@cheddar) August 11, 2021
"This is the type of thing, economists like to brush it off and say 'it's transitory, it's not a big deal,' but this is the stuff that matters to regular Americans," noted Cheddar's Jill Wagner. "I know when I go food shopping, I go for just what I think is just gonna be a quick food shopping, and I'm like $300 in the hole. Things are just much more expensive — it's just a lot more expensive to basically do anything these days."
It's not just economists who try to brush off the record-setting and now-tying inflation, the Biden administration continues to say that inflation pressure is temporary or seasonal, words that matter little to Americans struggling to stretch their dollars to meet rising costs.
"The numbers don’t lie – as a direct result of Biden’s failed policies, the dollars in the pockets of Americans are worth less and less," said the RNC in a statement. "With prices skyrocketing and American small businesses struggling to fill jobs, the last thing our economy needs is Democrats’ reckless $3.5 trillion tax-and-spending spree."
And while Democrats herald wage growth, the accompanying inflation is outpacing that growth and leaving Americans with less buying power. The result is a "Biden pay cut," according to Job Creators Network President Alfredo Ortiz. "Rapidly rising prices due to inflation are causing American workers' real wages to fall," Ortiz explained. "Wages grew by 4 percent last month while inflation increased by 5.4 percent meaning that hardworking Americans are falling further behind."
As the Department of Labor's data release explained, it's not just a few items that are seeing price spikes, it's almost everything Americans need.
The indexes for shelter, food, energy, and new vehicles all increased in July and contributed to the monthly all items seasonally adjusted increase. The food index increased 0.7 percent in July as five of the major grocery store food group indexes rose, and the food away from home index increased 0.8 percent. The energy index rose 1.6 percent in July, as the gasoline index increased 2.4 percent and other energy component indexes also rose.
The all items index rose 5.4 percent for the 12 months ending July, the same increase as the period ending June. The index for all items less food and energy rose 4.3 percent over the last 12 months, while the energy index rose 23.8 percent. The food index increased 3.4 percent for the 12 months ending July, compared to a 2.4-percent rise for the period ending June.
Whether it's rent, groceries, date night, cars, gas, or a power bill, consumers are feeling the impact of President Biden's economic policies that hit as a not-so-hidden tax on the budgets of all Americans, including those who Biden promised wouldn't see their taxes go up.