Matt Bush, FISM News
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Consumer prices rose by 6.8% in November 2021 compared to the same month one year ago and 0.8% compared to last month’s prices, according to a recent report by the U.S. Bureau of Labor Statistics.
Neither number will be welcome news for a U.S. economy still rife with supply-chain issues, work force shortages, and the continued effects of the COVID pandemic.
The bureau’s breakdown of specific consumer goods reveals that groceries were up by 6.4%, beef by 13.9%, used cars/trucks by 31.4%, and fast-food prices 7.9%. One of the most concerning rises saw gasoline prices soar 58.1% year-over-year and 6.1% from October to November.
The CPI report further adds to what has been a dismal trajectory of the U.S. economy under the Biden administration.
November’s inflation represents a 39-year high and follows a 30-year high established in October. Additionally, the month-to-month inflation rate has been 0.8% or higher four times in 2021 and 0.5% or higher in seven of the past 11 months.
“Generally, the higher prices we’re seeing are related to the supply-and-demand imbalances that can be traced directly back to the pandemic and the reopening of the economy,” Fed Chair Jerome H. Powell said, “but it’s also the case that price increases have spread much more broadly in the recent few months, I think the risk of higher inflation has increased.”
With inflation rising at an astounding rate, people leaving the workforce in droves, and supply-chain issues that have hampered almost every sector of the economy, Biden’s opponents have intensified their efforts to link the nation’s financial woes to the first-term president.
Republicans in Congress have largely blamed President Biden for inflation, often pointing to enhanced jobless benefits and the $2 trillion “Build Back Better” social spending plan as things that have caused or would exacerbate inflation. According to polls and approval ratings, more Americans are starting to agree.
Biden has seen his approval ratings plummet along with the economy. According to ABC News, “More than two-thirds of Americans (69%) disapprove of how Biden is handling inflation (only 28% approve) while more than half (57%) disapprove of his handling of the economic recovery.”
Those same polls show a partisan split, but only a slim 54% majority of democrats approve of the president’s handling of the economic recovery with 71% of independents disapproving of his handling of inflation.
President Biden’ approval rating has fallen to its lowest point since he took office. As midterm elections approach, the economy and inflation are likely to be key issues, if not the primary issues, that shape the next Congress.