Prices hit 39-year high as inflation rises 6.8%

The Bureau of Labor Statistics announced on Friday that inflation has hit a 39-year high as President Joe Biden continues to try to quell fears about rising prices.

The Consumer Price Index for All Urban Consumers rose increased by 6.8 per cent in the past twelve months before seasonal adjustment. The CPI-U also increased by 0.8 per cent on a seasonally adjusted basis in November.

The largest contributors to rising costs were gasoline, shelter, food, used vehicles and new vehicles. The energy index rose 3.5 per cent as gasoline spiked 6.1 per cent. Conversely, the index for food increased 0.7 per cent while the index for food at home rose 0.8 per cent. In total, food costs rose 6.1 per cent for the past 12 months.

The president sought to quell fears in a statement.

“Half of the price increases in this report are in cars and energy costs from November. Since then, we have seen significant energy price reductions,” he said. Last month, Mr Biden tapped into the nation’s strategic petroleum reserve, releasing 50 million barrels of oil to combat rising fuel prices.

Republicans were quick to rail against the president for the rising prices.

“With skyrocketing prices at a 39-year high, a supply chain crisis, trillions in reckless spending and tax hikes on families, Biden has lost the trust and confidence of the American people to get the economy working for them,” Chairwoman Ronna McDaniel said in a statement. “Americans can thank Biden and the Democrats for the most expensive holiday season on record.”

Republicans hope to make inflation a major issue in next year’s election. A new Wall Street Journal poll this week found that 44 per cent of voters think that Republicans are better-equipped to fight rising prices versus 26 per cent who think Democrats are.

Even worse news for the White House was the survey showed that 39 per cent of voters blamed the Biden administration’s policies for rising costs. Only 24 per cent said supply chain problems were the culprit and 17 per cent said pent-up demand from the pandemic. An additional 17 per cent blamed of corporations unnecessarily raising prices.

It also comes as Senator Lindsey Graham released a report that he requested a spending report from the Congressional Budget Office on Democrats’ proposed Build Back Better legislation that includes provisions on climate change, universal childcare and pre-school, an expanded child tax credit and increased spending on home care for people with disabilities and elderly people. But the report assumes that provisions in the legislation are permanent.