In our crowded media ecosystem, the biggest story of the week is one the White House is hoping you won’t notice. Inflation grew by 5 percent last month, the sharpest increase in 13 years. American families have noticed, with prices of gas, building materials, cars and food shooting upward significantly. Inflation is a scourge with a simple solution, but one the Biden administration feels it cannot afford: cutting spending and money-printing at the Federal Reserve. The latest inflation numbers are a blaring red warning sign that is both valuable and honest — it is the last point in which President Biden can put the brakes on before the specter of 10 percent (or higher) inflation.
This week’s inflation numbers should alarm the White House even more than the lackluster jobs report or the looming crisis on the southern border. Rampant money-printing and spending since the beginning of the pandemic is the direct cause of the COVID-19 panic and one exploited by politicians using the pandemic as a veneer for social engineering writ large. Our economic troubles will only get worse if Biden moves forward with his $6 trillion budget.
Everyday expenses are climbing almost across the board. Chipotle announced that it hiked prices by 4 percent to cover higher employee expenses. That rate tracks with the increase last month in the cost of food at restaurants. The price of used vehicles shot up nearly 30 percent, and airline fares were not far behind. Used car prices are expected to spike even further later this year. Home and rental prices increased, as well — a deceptive figure, considering that in many parts of the country the housing market is seeing an enormous surge in demand while others still lag from the pandemic. While the topline Consumer Price Index numbers are alarming, the “flexible” inflation rate of goods that are more vulnerable to price changes is up 12.4 percent — the highest since the Carter era.
Related: Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”