Price Growth Reaches 7-Month High, Challenging Biden’s Inflation Narrative
Inflation continues to rise, challenging the narrative of the Biden administration. According to the Bureau of Labor Statistics’ latest data, Consumer Price Index (CPI) inflation reached a seven-month high in March, with a year-over-year increase of 3.5 percent. This marks the thirty-seventh consecutive month of inflation well above the Federal Reserve’s target of 2 percent.
The price increases can be attributed to various factors, including food, services, electricity, and shelter. For instance, prices for “food away from home” rose by 4.2 percent, gasoline prices increased by 1.3 percent, and electricity surged by 5.0 percent. Prices for services and shelter also saw significant growth, with a 5.4 percent and 5.7 percent increase respectively.
Certain categories experienced even higher levels of inflation. Car insurance prices rose by 22.2 percent, car repair prices by 11.6 percent, transportation prices by 10.7 percent, hospital services prices by 7.5 percent, and homeowners’ prices (“Owners’ equivalent rent”) by 5.9 percent.
Even when volatile energy and food prices are removed from the index, core CPI inflation remains high at 3.8 percent, almost double the target of 2 percent. This indicates that price inflation is far from returning to normal. In addition, March’s month-over-month increase of 0.4 percent is the largest recorded since April 2023.
The Biden administration has been facing criticism for its handling of inflation. Supporters of the regime have claimed that inflation is falling or rapidly disappearing, but the latest CPI report proves otherwise. Even the media headlines acknowledge the stubbornly high inflation as “a political blow to Biden.”
President Biden has attempted to defend his handling of inflation by falsely claiming to have dramatically reduced it since taking office. However, when Biden assumed office, the CPI inflation rate was 1.7 percent. It was not until the summer of 2022 that the administration and the Federal Reserve acknowledged the need to address surging inflation.
Despite the appearance of decisive action against inflation, neither the Fed nor the administration has shown any interest in rejecting the policies that have contributed to the rising cost of living. Reversing the 40-year highs in inflation would require sustained quantitative tightening, which is currently not on the table.
The blame for rising prices cannot be placed solely on the private sector. The primary cause of inflation is monetary inflation fueled by the central bank. Additionally, deficit spending by both the administration and Congress exacerbates the situation. As deficits increase, the central bank is pressured to lower interest rates on new federal debt, leading to the printing of money and further inflation.
Unfortunately, the regime remains unrepentant and is unlikely to admit its role in fueling inflation. Instead, they continue to deflect blame onto external factors such as “greedflation” or shipping delays. The public can expect more gaslighting and attempts to shift responsibility away from the government.
In conclusion, the latest CPI data challenges the Biden administration’s narrative on inflation. Price growth has reached a seven-month high, indicating that inflation is far from transitory. The administration’s attempts to downplay inflation and shift blame onto the private sector are becoming increasingly implausible. As ordinary Americans continue to face rising costs of living, it is crucial to recognize the role of monetary inflation and deficit spending in fueling this crisis.
