US faces further inflation woes as CPI hits highest record in 30 years - Economy

US inflation continues to rise as consumer price index (CPI) data rose 6.2% year-on-year this week. Americans are worried because the Federal Reserve has expanded the money supply like no other time in history, cut interest rates, and US politicians are putting together multi-trillion-dollar packages with money the government doesn't have. News of higher-than-average inflation sent stock markets lower on Wednesday, and U.S. President Joe Biden said the White House was prioritizing “bringing prices down.”

Inflation: “The Predictable Result of Reckless Government Policy”

Inflation in the US is running hot and after the media and Federal Reserve officials repeatedly said over the last 12 months that inflation would be “transitory,” this is clearly not the case. Data from the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI) shows inflation is the highest in the country since the 1990s.

The CPI is a basket of products, and the American population has not lost that much purchasing power over these items since November 1990. Additionally, the index still rose 4.6% after the Bureau of Labor Statistics removed energy and food stocks, which can be volatile. The index with stripped factors is the highest since August 1991.

Using pre-1980 methodology, consumer price inflation today is about 15%. https://t.co/G6FplxKyCD pic.twitter.com/wFtm7Gt5yt

— Tuur Demeester (@TuurDemeester) November 10, 2021

Meanwhile, the latest CPI data has everyone talking and discussing topics like government spending, the Federal Reserve, and the disrupted supply chain in the United States.

“Inflation hits 6.2% – wiping out pay rises for those lucky enough to have a good job at all – parents worry about the price of milk for their children (if the shelves aren’t empty),” whistleblower and privacy activist Edward Snowden noticed after the release of the CPI data.

“Inflation is a huge tax hike on Americans and the predictable result of reckless government policies: massive spending bills, trillions of dollars created out of thin air by the Federal Reserve, and labor and supply shortages made worse by misguided interventionist plans,” Deputy Justin Amash wrote On Wednesday.

White House will prioritize “price cuts.”

As Americans grapple with the highest inflation records in 30 years, US President Joe Biden says inflation is "concerning."

Today's report shows an increase in inflation compared to the previous month. Reversing this trend is a top priority.

My infrastructure bill will lower costs by reducing shortages, and I'm calling on Congress to pass my Build Back Better Act - which will reduce inflationary pressures.

— President Biden (@POTUS) November 10, 2021

Biden also said the administration is focused on getting people back to work, "reducing prices" and "ensuring our stores are fully stocked." Biden made the statements during a speech at the Port of Baltimore on Wednesday and the US president went on to say:

Everything from a gallon of gas to a loaf of bread costs more. And it's worrying, even though wages are rising.

The politician continued to sell his newly passed infrastructure law, which will be signed on Monday. Biden spoke about a series of provisions that he claims will help solve the problems the supply chain has been dealing with over the past two years. “[We] will modernize our ports with $17 billion in investments – we will reduce congestion,” Biden told the audience.

What do you think of this week's CPI data and the discussion about rising inflation? Let us know your thoughts on this topic in the comments below.

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