The CPI, which tracks prices paid by Americans for basic items like food and gasoline, reached a level not seen in 41 years.
According to Labor Department statistics issued Tuesday, the CPI rose 8.5% from a year ago. Even after taking out food and energy, the overall CPI rose by 6.5%.
The current inflation rate has not been seen since the late 1970s, when Jimmy Carter was in office, or the early ’80s, under Reagan.
Dow futures rose over 200 points after the inflation number was published at 8:30 a.m. and before the markets opened, in an unusual twist.
“Price increases were caused by a slew of typical culprits,” according to CNBC. “Food prices rose 1% for the month and 8.8% over the year, while energy costs increased 11% and 32 percent respectively, with housing costs — which account for roughly a third of the CPI weighting — increasing another 0.5 percent on the month, resulting in an incredible 12-month gain of 5%.”
The White House has tried to distance Biden from high inflation on many occasions, even inventing a new phrase, “Putin’s price hike,” to describe it. For example, according to Biden’s official schedule for Tuesday, the White House stated that he would give a speech on government efforts to “mitigate the impact of Putin’ Price Hike.”
According to AAA, when Biden became president, a gallon of regular gas cost $2.33. The current average price of a gallon of gasoline is $4.10, up 43% from last year’s average price of $3.50.
The dismal statistics suggest that the Federal Reserve will raise interest rates even more in the future, according to The Associated Press.
“The most recent evidence of increasing costs will harden perceptions that the Federal Reserve will aggressively raise interest rates in the coming months to attempt to slow spending and control inflation,” according to the AP.
And incomes for Americans are not keeping pace with inflation, according to the wire service.
Consumers are seeing food prices rise every day at the supermarket. “Meats, poultry, fish and eggs have increased by 13% since February 2021,” according to CNBC. “The price of fresh fruit has gone up 10.6%, whereas the price of vegetables has remained much more steady, increasing just 4.3%. The cost of pre-prepared cereals and baked products has risen 7%.”