Biden has done it again. He’s managed to set a brand-new record as US inflation reaches yet another record high in June, soaring to 9.1 percent – the highest it’s been since 1981.
The rise has shattered the 8.8 percent Dow Jones estimate and is the largest 12-month increase in almost four decades, having soared from 8.6 percent in May.
American families, particularly those in low-income brackets, are struggling to afford everyday essentials as goods prices continue to climb while Biden’s approval rating is dropping at a progressively fast rate.
Meanwhile, Biden has urged Americans to stay calm about the out-of-control economic situation, assuring the public that the country is on track to emerge from the inflation surge, before adding that the figures were “out-of-date”:
“While today’s headline inflation reading is unacceptably high, it is also out-of-date,” he said.
"*" indicates required fields
“Those savings are providing important breathing room for American families,” he added, referencing the 40 cents gas price drop in the middle of last month from an eyewatering $5 a gallon to an average of $4.66 since Tuesday.
The Fact that Biden calls the current “decrease” in gas prices, down from record highs “savings” is insane.
The national average is still $4.63.
Joe is on another planet. pic.twitter.com/8h2uJcVLWc
— Benny Johnson (@bennyjohnson) July 13, 2022
“And other commodities like wheat have fallen sharply since this report.”
But according to Fox Business reports, the sky-high inflation rate may force the Federal Reserve to trigger a major economic change by initiating a nationwide recession by raising interest rates:
“What seems to be forgotten here is that inflation is a sticky, slow moving variable,” said Bank of America analyst, Ethan Harris.
“Spikes can reverse quickly, but underlying inflation tends to move in a gradual lagged fashion with respect to the economy. It is going to take time to cool off the labor market and even more time to lower labor cost-driven inflation.”
Federal economic policy makers approved a 75-basis point interest rate hike last month, the first of its kind since 1994 and another hike is expected later this month in an attempt to cool the inflation furnace.
Projections suggest that interest rates will be as high as 3.4 percent by the end of this year – figures which haven’t been seen since 2008.
Meanwhile, Biden’s approval rating continues to plummet. While Democrats could historically rely on pulling in the black and Hispanic vote, rising prices of goods has hit lower-income communities the hardest.
While the president acknowledged that taming the economic crisis was an important priority for him, he shifted the blame for the disaster from the war in the East to the aftershock of the Covid pandemic:
“Most of it’s the consequence of what’s happened, what happened as a consequence of the COVID crisis,” Biden told NBC.
“Be confident, because I am confident we’re better positioned than any country in the world to own the second quarter of the 21st century,” he added.
Inflation in other Western nations has also seen dramatic rises in recent months. The UK hit 9.1 in May and inflation levels in the European Union area spiked at around 8.8 percent last month.
Canada’s inflation rate is currently 7.7 percent while Eastern countries like Japan and China are some of the lowest in the world at just 1.9 percent and 2.5 percent consecutively.
Unsurprisingly, Russia’s rates sky-rocketed to 17.1 in June.