US inflation rate jumps to 7 % at the highest level in 40 years, Democrats fear that inflation will search for the party-Economics

Inflationsrate-spring-auf-7-uf-sten-stand.jpg" class = "Story__img Article__poster "Alt =" US inflation rate increases at 7 % to the highest level in 40 years, Democrats fear that inflation will search for the party "Loading =" Lazy ">

One of the hottest topics in the United States in 2022 is the increasing inflation, since the data published on Wednesday of the US Ministry of Labor indicated that the consumer price index (VPI) rose to 7 % in December. This is the largest annual leap since 1982. The governor of the US Federal Reserve, Lael Brainard, will now tell the congress leaders that the central bank focuses on combating inflation. In addition, members of the Democratic Party fear that increasing inflation could politically burden the bidue administration.

CPI rate jumps to 7 %, wholesale prices rise by 9.7 %

on January 11, 2022 The US Ministry of Labor published the VPI data for December and the key figures US inflation rate has increased by 7 % in the annual comparison (YOY) and the last month the third month in a row was over 6 %. The increase is the highest jump that the CPI has experienced since June 1982 because inflation exponentially increase the costs of goods and services. Basically, the CPI is a measure of a shopping cart of consumer goods and services for which urban consumers pay regularly.

After the Ministry of Labor published the statistical estimate, the CPI jump made headlines and ignited a Number of discussions on inflation in social media and forums. To make matters worse, the inflation rate of the US generator prices or wholesale prices, jumped by 9.7 % in December a year ago, which is the highest record in the year. The inflation rates have meant that a number of US officials are concerned about the lack of purchasing power with which the Americans have to struggle today.

The governor of the US Federal Reserve responds to inflation concerns, the governors of the states take measures

On Thursday, the governor of the US Federal Reserve, Lael Brainard to discuss plans The concentration of the central bank on the inflation problem in prepared statements before the US Congress. Brainard published an explanation on Wednesday, in which it is said that the "policy of the Federal Reserve focuses on reducing inflation to 2 % again and at the same time maintaining a recovery that includes everyone". The day before, the governor of Florida, Ron Desantis, said that he had proposed a draft law to help families in Florida to ward off inflation loads. Desantis tweeted :

In order to reduce the inflation load for families in Florida, I propose a tax vacation of $ 1 billion to reduce prices at the petrol pump. If Washington, DC, does not change his course, then we have the responsibility to get involved in the name of the Floridians.

headlines show that bids, Democrats could pay a “political price” for inflation-the bidet government rejects concerns

In the meantime there is Numerous headlines On Thursday it says: "Democrats fear that bidges could pay the political price for increasing inflation."

an cnn-analysis written by Maeve Reston and Stephen Collinson, says: "Inflation concerns could mean trouble for the Democrats." Jared Bernstein, Bidens Economic Advisor, rejected the concerns when he discussed the topic with Jim Sciutto from CNN.

"It is really important to get behind the hood of these monthly inflation reports," Bernstein told Sciutto. "And if you look at the change from November to December, inflation has increased by half a percent. This is significantly less than in October and November, when inflation rose by 0.8 and 0.9 %." US President Biden repeated the same comment and said:

Today's number of inflation shows a significant decline in the overall inflation [the] last month. We make progress in slowing down the price increases. But there is more to do - I continue to focus on reducing the costs for families and maintaining strong economic growth.

US officials mocked on social media, economist Peter Schiff says that interest rates are far worse than the "cooked CPI of the government"

In social media, politicians and the US Federal Reserve were smiled at for increasing inflation. Square and Twitter founder Jack Dorsey said Santa Claus did not take the temporary inflation away. " Sven Henrich von Nortman Trader jokingly tweeted : "Spx is red went out. "

The gold bug and economist Peter Schiff discussed the topic of inflation in a target = "_ blank" href = "https://schiffgold.com/peters-peter-schiff-the-inflation-freiight-train/" Rel = "noopener"> blog entry mentioned: "The inflation freight train". Schiff's blog post reminds the Americans that the CPI formula is considered inaccurate and inflation is probably much higher.

"Remember, this uses the Boiled Government VPI Formula that underfloored", claims ship's territory. "If the government was still using the 1982 formula, inflation would be higher than then. In fact, we would have the highest inflation rate in history. In accordance with Shadow statistics 15 %”, adds the blog post.

What do you think of increasing inflation in the USA and criticism of the political leadership of the country? Let us know your opinion on this topic in the comments below.

Jamie Redman

Jamie Redman is News Lead at Bitcoin.com News and a Finanztech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com news about the disruptive protocols that arise today.

Bedy verification : Shutterstock, Pixabay, Wiki Commons, Twitter,