According to the Consumer Price Index (CPI) released on Wednesday, Nov. 10, gas prices jumped 59 percent over the last year while the cost of meat increased 24 percent. Everyday consumer goods rose 6.2 percent in October 2021, which is the highest since November 1990.
In a statement, Senator Rick Scott of Florida said that inflation continues to rise for every month of Biden's presidency, which makes lives harder for American families. Republicans put the blame on government spending and the Democratic agenda, pointing to the third round of relief checks and expansion of federal unemployment benefits that were included in the March stimulus bill.
''When it comes to helping working American families, President Biden and Democrats in Washington have flown right past sheer incompetence and decided to dive headfirst into purposeful destruction. You need to look no further than today’s dismal CPI report to see that's true," Scott said. (Related: Biden prioritizes gender-based issues over supply shortages and inflation.)
Biden vowed to make reversing the rising inflation a "top priority" after the CPI revealed that inflation is at its highest in 31 years. Biden blamed "market inflation" and rising gas prices for the increase despite top economists pointing to the supply chain shortages and businesses struggling to meet demands from COVID shutdowns.
In a statement, Biden said that his $1.2 trillion Build Back Better plan will help slow down the problem. Treasury Secretary Janet Yellen vowed that the inflation will not reach exorbitant levels similar to that of Jimmy Carter's administration even as household debts increase to record highs.
Critics of Biden reiterated that the threat from inflation is not "transitory," but is instead getting worse. "From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day," Senator Joe Manchin of West Virginia said.
Following the release of the CPI, Biden said that he is working to address the problem. He noted that he already directed the National Economic Council to pursue means to try to further reduce costs. He also asked the Federal Trade Commission to strike back at market manipulation or price gouging.
Cost of living increasing at a faster rate
"The cost of living in the United States is increasing at a faster rate today than in the last 30 years. With holidays just around the corner, the Biden administration has only exacerbated the anxiety that families face as the U.S. approaches the most expensive Thanksgiving on record, involving soaring prices and scarcity of goods," said House Minority Leader Kevin McCarthy of California.
"'Americans see it with their own eyes: ships are stacked up at our ports, shelves in stores that are empty, and heating and gas prices continue to rise. All of these problems add direct pressure on American families’ pocketbooks."
In his statement on Wednesday, Biden claimed that the passage of the Build Back Better plan will help ease the burden of high costs on Americans, pointing out that it will reduce the cost of child and elder care, provide more affordable health care coverage and cut taxes for 50 million Americans.
He also said that he was traveling to Baltimore, Maryland, to highlight how his plans will bring down costs and reduce bottlenecks while making goods more available and affordable.
Meanwhile, Yellen said she expects prices to normalize by mid to late 2022 and the Federal Reserve previously signaled that it intends to hold interest rates near zero until late 2022 or 2023 at the earliest. The central bank announced that it will gradually pull back on some emergency aid to the economy by making small cuts in the Treasure and mortgage-backed bonds to keep interest rates low.
Read more updates on the ongoing inflation and supply crisis at Bubble.news.
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