Inflation numbers for May are out, and they come in even worse than expected. The Bureau of Labor Statistics’ Consumer Price Index (CPI) shot up to 8.6% last month, the highest total in 41 years.
To put that in perspective, if prices continue to rise the U.S. will experience Jimmy Carter-era inflation. This is a jolt of reality at a time when Democrats are trying to distract the public from the economic shambles surrounding them.
The latest figure widely overshot the mark analysts hoped for to confirm that inflation has plateaued. A slight retreat in energy prices in April spurred optimism that there was a light at the end of the economic tunnel. That, however, proved short-lived.
Making day-to-day finances even harder for Americans is that the increases stretch across nearly all economic sectors. With so much of household spending non-discretionary, there’s little to no way to avoid the impact.
Even core inflation, which excludes more volatile energy and food, shot up 6% in May. This also surpassed economists’ predictions and indicates that basic inflationary pressures are not going away.
Fuel costs, which just Thursday reached a $5 average for a gallon of regular gas nationally, are up a shocking 106.7% over just a year ago.
Additionally, shelter costs are spiking at the highest rate in 31 years. These are often overlooked as pump prices are most obvious, but they make up fully one-third of the CPI. Mortgages, rents, gas, electricity, water and sewer, property taxes and more continue to soar through the roof.
Democrats are undoubtedly kicking themselves over this latest revelation that, unfortunately for them, confirms what every American already knows.
The Federal Reserve continues to try to undo damage of their own creation from radically easy money policies that flooded the economy with cash during the pandemic. Now there are limited options for the central bank that don’t lead directly to recession.
This is not what the Biden administration wants to hear and not what they want to project to voters. Unfortunately for them, no primetime three-ring circuses and finger pointing at dictators half-way around the world washes their hands of this mess. It’s theirs to own.