Despite President Joe Biden's repeated claims that inflation is coming down as a result of his economic policies — first "Build Back Better" and more recently "Bidenomics" — prices on goods and services remain more than three percent more expensive than one year ago and the Consumer Price Index (CPI) hit a "new all-time high" of 314.069.
CNBC: The actual Consumer Price Index has reached "new all-time high" as inflation remains far higher than the Fed's target rate.
— RNC Research (@RNCResearch) June 12, 2024
"The cumulative effect is substantial — and that's what these indices continue to show us on a month-over-month basis." pic.twitter.com/hWJ5VJZi2Q
The May CPI from the U.S. Bureau of Labor Statistics (BLS) released Wednesday morning showed no month-over-month change in headline inflation, but prices are still up 3.3 percent in the last year. In May, the cost of shelter increased 0.4 percent and the food index rose 0.1 percent driven by a 0.4 percent advance in the cost of food away from home.
Core CPI inflation — which excludes more volatile food and energy prices — increased 0.2 percent in May bringing the 12-month increase in core inflation to 3.4 percent, well above the Federal Reserve's goal of just 2.0 percent.
Inflation comes in cooler than expected for May, w/ CPI up 3.3% Y/Y and flat M/M while core rose 3.4% Y/Y and 0.2% M/M, but a slower increase is still an increase and prices set a new record high: pic.twitter.com/N6EuXZJCdn
— E.J. Antoni, Ph.D. (@RealEJAntoni) June 12, 2024
May's consumer inflation print showed that, over the last 12 months, shelter costs jumped 5.4 percent, motor vehicle insurance rose 20.3 percent, medical care increased 3.1 percent, and personal care costs went up 2.9 percent.
Looking at the cost of goods and services since Biden took office in January 2021 paints a bleak picture for Americans trying to make ends meet:
🚨SINCE BIDEN TOOK OFFICE:
— Jacki Kotkiewicz (@jackikotkiewicz) June 12, 2024
Gas: +55.3%
Groceries: +21.2%
Eating out: +22.2%
Baby food: +28.4%
K-12 food: +65.1%
Pet food: +23%
Rent: +21.2%
Electricity: +29%
Natural gas: +22.2%
Used cars: +20.9%
Airfare: +39.9%
Public transportation: +27.2%
Real average weekly earnings: -3.9%
Still-rising inflation that's above the Federal Reserve's target rate means Fed Chairman Jerome Powell's task of wrangling inflation has not been accomplished. The Fed is set to issue a new decision on interest rates Wednesday afternoon, but last year's forecast calling for multiple interest rate cuts in 2024 has become another punchline of the Biden economy.
Reacting to Wednesday's report, CEO of Job Creators Network Alfredo Ortiz noted that "stubbornly high inflation continues to accelerate far faster than the Federal Reserve's target rate and is wreaking havoc on small business owners and ordinary Americans" who are "reminded of this Bidenflation every day and with almost every purchase."
Ortiz emphasized that "no amount of Democratic spin about the current state of the economy will resonate with voters" and the"only way to bring prices back under control and meaningfully raise living standards is by electing conservative candidates who will stop the reckless spending and anti-energy policies fueling inflation's fire."