This week’s new inflation report (3.4%) showed inflation not going in the wrong direction but not getting much better.
2.) Other household items have gone up significantly. Gas has increased over 50% since the beginning of his term (55.5%). Food is up 21.3% and electricity at 28.5%.
3.) The gap between wages and inflation has widened since last month. The cumulative inflation rate (19.9%) versus the cumulative increase in wages (14.1%) is 5.8%, compared to 5.2% in last month’s report.
After the new inflation numbers were released, the White House claimed that there were many inflationary factors in the economy in play when President Biden took office. Yet after the CARES Act was signed on March 27, 2020, inflation was less than 2% for 11 consecutive months, which extended into Biden’s term. In February 2021, it was at 1.7%. After President Biden signed the American Rescue Plan into law in March 2021, inflation jumped from 2.6% to 4.2% in April which started the current 37 month streak of inflation being over 3%.
Some Democratic strategists have advised the President to show more empathy on economic issues, but given the results of these inflation reports, voters are seeking relief from price increases rather than empathy alone.