Despite the claims made by President Joe Biden and Democrats on Capitol Hill, inflation is still not "going down." Instead, according to the latest Consumer Price Index released on Thursday, inflation increased again in December in a significant acceleration from November's read on consumer prices.
According to the Bureau of Labor Statistics (BLS), CPI inflation increased 0.3 percent in the final month of 2023, tripling the 0.1 percent increase recorded in the previous month. On an annual basis, the last 12 months saw inflation rise 3.4 percent — notably more than the Federal Reserve's target inflation rate of just 2.0 percent.
CPI for all items rose 0.3% in December; shelter up https://t.co/dJyJeKlXDJ #CPI #BLSdata
— BLS-Labor Statistics (@BLS_gov) January 11, 2024
One of the biggest drivers of December's price increases came from the shelter index, which accounted for half of December's jump according to BLS. In addition, the energy index increased 0.4 percent in the final month of last year, with electricity and gasoline price increases outweighing a small drop in the natural gas index. The cost of food increased 0.2 percent.
Core CPI inflation — which excludes food and energy — also increased 0.3 percent in December, matching November's print, for a 3.9 percent increase in core costs over the previous 12 months. Over the previous year, the cost of food spiked an additional 2.7 percent.
Job Creators Network CEO Alfredo Ortiz said the latest CPI report showing surging prices is "destroying the narrative that the inflation fight is over" as prices "are still rising at nearly twice the Federal Reserve's target rate."
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"This high inflation is coming on top of the historic inflation that occurred during the first two years of Biden's presidency," Ortiz reminded. "As a result, ordinary Americans and small businesses are facing a cost-of-living crisis.Today's inflation numbers show no relief is in sight, and the nation is moving in the wrong direction," he continued.
"Resurgent inflation is a direct result of reckless spending by the Biden administration and Congress," Ortiz emphasized. "The only way to truly get inflation under control is by ending reckless spending. Voters can make this a reality by choosing fiscally responsible candidates this year."
The December CPI print is bad news for both the Federal Reserve and Joe Biden. The former had suggested multiple interest rate cuts in 2024 after pausing aggressive increases that sent interest rates to their highest level since early 2001, but if inflation continues to increase and accelerate back toward the monthly records set earlier in Biden's term, they're not going to be able to bring rates down without pouring gas on the inflationary fire started by Biden and congressional Democrats. Speaking of Biden, his ability to use "Build Back Better"-turned-"Bidenomics" as a reason why he deserves a second term continues to evaporate.
Beyond the story told by each monthly inflation report, the data comparing prices for Americans now to January 2021 when Biden took office is damning. As Heritage economist E.J. Antoni explains in a thread on X, Americans are paying significantly more as a result of Biden's economic policies. Americans in chillier states this winter, for example, are paying more than 28 percent more to heat their homes now than they were in January '21. Grocery bills have continued to soar with Americans now paying between 23 percent and 37 percent more for food staples than they were when Biden took office. The cost for many other routine purchases have risen more than 20 percent under Biden — all while real weekly earnings have fallen 4.5 percent under Biden's leadership.
Dec CPI 🧵...
— E.J. Antoni, Ph.D. (@RealEJAntoni) January 11, 2024
Inflation rips the stake out of its chest, looses a blood-chilling scream, and tells the Fed it's ready for another round; real weekly earnings are down 4.5% since Jan '21 and things are poised to get worse... pic.twitter.com/NMSoS0riak
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