Peach Tree Times

The U.S. Bureau of Labor Statistics (BLS) issued its latest Consumer Price Index (CPI) summary on Sept. 13.

The report found that the rate of inflation over the last 12 months stands at 8.3%. In the last year, food costs have risen by 11.4%, energy costs have increased by 23.8%, gas prices have risen by 25.6%, and the cost to purchase a new vehicle has increased by 10.1%.

In a recent press release, Senate Minority Leader Sen. Mitch McConnell (R-KY) noted that inflation has increased 13.2% since January 2021.

“For the average American household, this translates to hundreds and hundreds of extra dollars every month,” he said in the release.

BLS data for the Atlanta-Sandy Springs-Roswell area released Sep. 13 showed inflation at 11.7%, meaning the CPI has increased 11.7% in August of this year compared to 2021. Food prices increased by 12.6% and energy prices rose 16.8% since last year.

President Joe Biden celebrated the passage of the Inflation Reduction on Sept. 13 with Congress members and White House staff gathering on the South Lawn.

“Today offers proof that the soul of America is vibrant, the future of America is bright and the promise of America is real,” Biden said in a Politico report. The celebration took place the same day the Labor Department released the numbers on inflation for August.

A recent Gallup poll found that 56% of respondents said “price increases are causing financial hardship,” rising from 49% in January and 45% in November of last year. The poll, which surveyed 1,500 Americans from Aug. 1-22, showed 74% said they were experiencing “severe or moderate hardship,” with middle-income and upper-income households struggling more than last year. Republicans were more likely to mention the hardship than Democrats, Gallup noted.

A more recent Gallup Poll found that inflation and the economy are the top issues in the upcoming election.

A recent CNN Business report noted that 71% of workers said their wages are not keeping up with inflation and that the cost of living is “outpacing their salary.” A Bank of America poll found that 62% of workers are worried about their finances despite having a job.

“Stubbornly high inflation is eroding paychecks and darkening the mood of consumers,” the CNN report said. “Although gasoline prices have eased in recent months, prices for food, rent and utilities remain high.”

Lorna Stabbia, head of retirement and personal wealth solutions at Bank of America, told CNN Business that inflation is one of the main reasons people are worried.

EJ Antoni, a research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, found that Americans have lost $4,200 in annual income since January 2021. Heritage claims this is mainly because of inflation and high interest rates.

“Simply put, working Americans are $4,200 poorer today than when Biden took office,” he said. “This financial catastrophe for American families is the direct result of a president and Congress addicted to spending our money, combined with a Federal Reserve compliantly enabling this addiction by printing more dollars. Washington recklessly spent trillions of dollars it did not have and paid for it with newly printed money, causing rampant inflation that has destroyed people’s purchasing power and jeopardized Americans’ financial futures.”

Some economists agree that inflation is tied to increased federal government spending, a report from Smart Asset said. Inflation can also stem from federal interest rates, supply chain issues and monetary policy. In the last 100 years, inflation has averaged approximately 3% per year, but Smart Asset noted that the Consumer Price Index started “surging” in 2021.

The Consumer Confidence Index (CCI) “provides an indication of future developments of households’ consumption and saving, based upon answers regarding their expected financial situation, their sentiment about the general economic situation, unemployment and capability of savings,” the Organization for Economic Cooperation and Development website said. The Conference Board reported that the CCI rose 4.4 points in September to reach 108. The CCI was at 113.8 when Biden took office.