Inflation hits levels of 2008 financial crisis

Newly released federal data showed a major spike in consumer prices, worrying experts about the continued rise of inflation.

The Bureau of Labor Statistics released consumer price data Tuesday showing the largest one-month increase in consumer prices in over a decade. These prices are a key indicator of inflation.

“The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in June on a seasonally adjusted basis after rising 0.6 percent in May…” BLS said. “This was the largest 1-month change since June 2008 when the index rose 1.0 percent. Over the last 12 months, the all items index increased 5.4 percent before seasonal adjustment; this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.”

The all-items index increased by 5.4% in the last 12 months, continuing an upward trend since Biden took office.

“[The consumer price index] has been trending up every month since January, when the 12-month change was 1.4 percent,” BLS said. “The index for all items less food and energy rose 4.5 percent over the last 12-months, the largest 12-month increase since the period ending November 1991. The energy index rose 24.5 percent over the last 12-months, and the food index increased 2.4 percent.”

The increase in prices was disproportionately driven by the cost of vehicles and energy sources such as gas and electricity.

“The index for used cars and trucks continued to rise sharply, increasing 10.5 percent in June,” BLS said. “This increase accounted for more than one-third of the seasonally adjusted all items increase. The food index increased 0.8 percent in June, a larger increase than the 0.4-percent increase reported for May. The energy index increased 1.5 percent in June, with the gasoline index rising 2.5 percent over the month.”

The numbers drew ire from House Republicans, who have used the term “Bidenflation” to lay the blame for the increased prices at Biden’s feet.

“Even former Obama-Biden economic czar Steven Rattner has admitted that wage increases will ‘mean nothing’ for American families if inflation increases,” House Republicans on Ways and Means Committee said in a statement. “Though Democrats will call this inflation ‘transitory,’ cash-strapped Americans at the grocery checkout counter will have to stretch their budgets to deal with these higher prices. It’s time for Democrats’ emergency spending and endless government checks to come to an end.”

The inflation numbers are also gearing up to be a point of contention on the campaign trail. Democrats face a tough battle to maintain control of the House and Senate in 2022, and Republicans have made clear the rising prices are a main line of attack against Biden and the Democratic party.

“Americans are rightfully concerned about the rising cost of everyday goods,” said Mike Berg of the National Republican Congressional Committee. “Voters will hold Democrats accountable for their harmful economic policies that are making everything more expensive.”

This article was originally posted on Inflation hits levels of 2008 financial crisis

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