New numbers released Tuesday show the inflation rate was 8.3% in August while core inflation, which excludes food and energy, increased to 6.3%, more than three times the Federal Reserve’s target. Inflation actually increased from July to August, as well. Recent declines in gasoline prices due to decreased demand and recession fears were offset by price increases on many other daily products Americans purchase, including chicken up 16.6%, eggs 39.8%, flour 23.3%, natural gas 33.0%, health insurance 24.3%, and airline travel 33.4%.
Despite the striking rise in prices during the Biden administration, the White House has announced a plan to bail out student loan debt holders, which could cost upwards of $1 trillion and make the inflation problem even worse.
EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, released the following statement Tuesday:
“After casting blame in every direction for the inflationary storm they created, the Biden administration now wants to take credit for an inflation rate that remains nearly six times what it was when Biden took office. The reality is that American families are still losing ground because of his policies.
“People are demonstrably worse off today than when Biden became president. Real wages have fallen 5.5%, the annual equivalent of $3,000 for the average American. Meanwhile, home affordability has plummeted 35%, monthly savings have collapsed 75%, and credit card debt has risen 22%. Americans have been financially crushed by the Swamp’s monetary malpractice and fiscal irresponsibility of Washington.
“While the Federal Reserve is belatedly beginning to do its job by reducing money creation and allowing interest rates to rise, it is working at cross purposes with Congress and the president, who continue their profligate spending and borrowing. To avoid a worsening recession, our governmental and monetary leaders must stop the reckless spending, borrowing, and money-printing, while also embracing policies that will unleash American energy production.”