One of the hottest topics in the U.S. in 2022 is rising inflation, with data from the U.S. Labor Department on Wednesday showing the consumer price index (CPI) rose to 7% in December. This was the largest annual jump since 1982. Federal Reserve Governor Lyle Brainard will tell congressional leaders today that the central bank is focused on fighting inflation. In addition, members of the Democratic Party are concerned that rising inflation could cost a Biden administration politically.
CPI rises to 7%, wholesale prices surge 9.7%
January 11, 2022 U.S. Department of Labor post CPI data and indicators for December showed U.S. inflation rose 7% year-on-year, surpassing 6% last month for the third straight month. It was the highest increase in the CPI since June 1982, as inflation has driven the cost of goods and services soaring exponentially. Basically, the CPI is a measure of the basket of consumer goods and services that urban consumers regularly pay for.
CPI jumps into headlines after Labor Department releases statistical forecast, sparking number of discussions About inflation on social media and forums. Worse yet, U.S. producer price inflation, or wholesale prices, up 9.7% In December, it was the highest year-over-year record to date. The level of inflation has led many U.S. officials to become increasingly concerned about the lack of purchasing power Americans face today.
Fed governors tackle inflation, state governors take action
On Thursday, Fed Governor Lyle Brainard plan discussion The central bank is focusing on inflation as it prepares to testify to the US Congress. In a statement Wednesday, Brainard said the Fed’s “policy is focused on bringing inflation back down to 2 percent while maintaining a recovery that includes everyone.” The day before, Florida Gov. Ron DeSantis said , he has introduced a bill to help Florida families avoid the burden of inflation.DeSantis tweet:
To help ease the inflationary burden on Florida households, I’m proposing a $1 billion gas tax break to help lower prices at the gas station. If Washington, D.C. doesn’t change course, then we have a responsibility to stand up on behalf of Floridians.
Headlines suggest Biden, Democrats may pay ‘political price’ for inflation – Biden administration denies concerns
At the same time, there are Numerous headlines “Democrats are concerned that Biden could pay a political price for rising inflation,” it said on Thursday.
One CNN analysis The article, written by Maeve Reston and Stephen Collinson, said, “Inflation concerns could spell trouble for Democrats.” However, Biden’s economic adviser Jared Bernstein discussed the topic with CNN’s Jim Hutto These concerns were dismissed.
“It’s very important to understand these monthly inflation reports,” Bernstein told Sciutto. “If you look at the change from November to December, inflation rose by 0.5 percentage points. That’s a big drop from October and November when inflation rose 0.8% and 0.9%, respectively.” US President Biden reiterated made the same comment and said:
Today’s inflation figures show a significant drop in headline inflation [the] last month. We have made progress in slowing the pace of price increases. But there is more work to be done – I remain focused on reducing household costs and maintaining strong economic growth.
U.S. officials mocked on social media, economist Peter Schiff says rates are far worse than ‘government cooked CPI’
On social media, politicians and the Fed were ridiculed for rising inflation. Square and Twitter founder Jack Dorsey Say “Damn, Santa didn’t take the short-lived inflation away,” jokes Northman Trader’s Sven Henrich tweet: “SPX goes red as inflation party runs out of free drinks.”
Gold bug and economist Peter Schiff discuss inflation in an article. blog post Known as: “Inflation Freight Train”. Schiff’s blog post reminds Americans that the CPI formula is considered inaccurate and inflation could be much higher.
“Remember, this is using cooked government CPI The formula for underestimating inflation,” Schiff’s editorial claimed. “If the government was still using the formula it used in 1982, inflation in 2021 will be higher than it was then. In fact, we will be facing the highest level of inflation in history.according to Shadow Statistics, which would be over 15 percent,” the blog post added.
What do you think of rising inflation in the US and criticism from the country’s political leaders? Let us know what you think about this topic in the comments section below.
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