The inflation rate over the last year hit 8.2%, according to new data released Thursday, while prices rose 0.4% in September. Core prices, which exclude food and energy, rose 6.6% over the last 12 months, the fastest pace in four decades, and 0.6% in the last month. Many consumer staples have become significantly more expensive since this time last year, including eggs up 30.5%, chicken 17.2%, flour 24.2%, and milk 15.6%. Prices for many other essentials have also risen sharply, including health insurance up 28.2%, natural gas 33.1%, and home heating oil 58.1%.
This report comes the day after the Department of Labor released September’s Producer Price Index (PPI) data, which showed prices paid by businesses rose by 8.5% over the last year and 0.4% in the last month—another major driver behind increasing prices on goods Americans buy every day.
EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, released the following statement in response to the numbers:
“Since President Biden took office, real wages have fallen, while the cost of living in Biden’s America has skyrocketed. Prices have risen so much that the average worker has lost the equivalent of $3,000 in annual income since January 2021. This inflation is the direct result of the Federal Reserve printing money to finance the prodigal spending sprees of a reckless Congress and White House.
“Now that the Fed is finally raising interest rates, borrowing costs are increasing dramatically, with interest rates on mortgages doubling over the last few months. Interest rates on everything from credit cards to auto loans have increased, costing the average American around $1,200 in annual income compared to January 2021.
“Unfortunately, the Biden administration and Congress are now working at cross purposes to the Fed. The constant spending and borrowing in Washington mean that the Fed needs to raise rates higher and faster to get inflation under control. Those higher rates cause even more pain for American families, adding insult to injury by making mortgages, auto loans, and other consumer debt more expensive.”