This week’s consumer price index figures will reveal an increase in US inflation that has surpassed four decades on record, even as President Joe Biden claims increasing costs are more to do with malevolent external factors than his own economic mismanagement.
According to Bloomberg’s expectations, the consumer price index (CPI) will climb 8.4 percent year over year during Thursday’s release of data, the fastest since 1981.
The news is even worse: only days after former Director of the National Economic Council under Obama, and Treasury Sec. under Clinton, and now Harvard Professor, Larry Summers, said that recession risks have “gone up dramatically,” he would put the chances of a recession in the next two years at greater than two-thirds.
He made that assumption on the basis that there hasn’t been an era in American history when inflation was more than four percent with an unemployment rate under four percent where there was not a recession within two years.
While the rate of price rises in the United States continues to rise, it appears that the Biden administration still lacks both tools – and political will – to address headline inflation. The Financial Times notes:
“The difference between headline and core CPI is indicative of a worsening problem for the Fed.”
“Inflation due to supply chain blockages or sanctions on Russia is not within the Fed’s direct control, but it will certainly result in a higher headline number. That might lead to more expansive policy changes.”
The U.S. rate of price rise has risen from 7.9 percent in February, when the Ukraine conflict began, according to the Financial Times.
Commodity prices rose significantly since then, with the global oil reference point known as Brent crude reaching its highest level in 2008.
Oil prices have since subsided, although they are still elevated, pushing up consumer costs as reported by the FT.
While the rise will be harmful to consumers, it will be political venom for President Joe Biden, who has stated that he is “sick” of Americans blaming him for inflation rather than the coronavirus epidemic or Putin, as previously noted by Breitbart News.
The president’s terrible economic ratings are due to his inability to handle inflation.
According to a recent poll, 63 percent of Americans disapprove of the president’s approach to the inflation and rising costs problem, including 54% who are extremely dissatisfied.