June’s inflation figure raced past already high expectations to a red-hot 9.1%, which set a new four-decade record high for price increases. The latest Consumer Price Index (CPI) released Wednesday morning reached a level not seen since December 1981.
But for President Joe Biden, the numbers from the Bureau of Labor Statistics are “out of date.” Out of date? They were released on schedule and reflect the latest data available on Bidenflation, so exactly how do they not reflect reality?
Calling them “unacceptably high,” the beleaguered Democrat noted that gas prices have fallen back somewhat over recent days.
They have, but that mild retreat does not include grocery bills as home food prices leaped 12.2%. And even if food and gas are excluded, core CPI prices climbed 5.9% for the 12-month period that ended in June. Rent surged 0.8% for its highest increase since 1986.
The shocking 9.1% inflation surge eclipsed the already high 8.6% May figure that sent the Federal Reserve scrambling to raise interest rates.
The figure reflects the enormous impact of gas prices, which topped $5 per gallon on average in June, as well as soaring food costs.
Sen. Marco Rubio (R-FL) summarized the GOP position when he noted that Democrats are not concerned with the same issues as average Americans. Inflation — particularly gas and food costs — along with violent crime and the border crisis concern voters the most.
Investors hoped to see signs that inflation had peaked, and many pointed to pump prices backing off as signaling the high had been reached. Wall Street expects the Fed to take the CPI as affirmation that it should continue aggressively hiking interest rates.
Coupled with last week’s stronger-than-expected jobs report, the central bank will likely conclude the economy is strong enough to absorb more hawkish moves. With Wednesday’s news, the Fed is expected to repeat last month’s 75-basis-point interest rate hike.
June’s increase was the largest since 1994, and it’s likely coming again in July. Some analysts, after the shocking CPI, wonder if the Fed will go even higher.
It is a mark of desperation when the White House, on the day new data is released, calls it “out of date.” The observation would be comical if it were not so deadly serious for tens of millions of working Americans who see no relief in sight. And that sadly is up to date.