Last July, Joe Biden fielded a reporter’s question asking him when he would consider taking action or seeking action by the Federal Reserve to address the inflation hitting the American economy. Biden responded by scoffing that “no unchecked inflation” is coming to the country and that “no serious economist” believed inflation would be an ongoing issue.
Fast forward to this week, and the U.S. Bureau of Labor Statistics has reported that the “all items index” went up 7.0 percent for the 12 months ending last month. That marks an enormous 12-month surge since the period ended in June 1982. With food and energy removed from the calculation, prices increased 5.5 percent, the most significant increase since February 1991. Food prices went up 6.3 percent, and energy prices skyrocketed 29.3 percent.
The Wall Street Journal reported this week that 2021 is likely to stand as the most considerable price inflation year in four decades. As for this year, former Obama chair of the Council of Economic Advisers says that he expects 2022 to see inflation continue at a “very elevated” rate.
Gas prices are back on the rise, even though demand is falling. According to AAA, the national average cost for a gallon of gas went up over the past week to $3.30, a weekly increase of two cents.
Reporting of data from the Energy Information Administration shows that demand for gas went down from 9.72 million barrels per day to 8.17 million. The national gas inventory went up by 10.1 million barrels to 232.8 million barrels over the same period.
Even though demand is down and inventories are up, the continuing growth in crude oil prices is driving gas price increases at the pump.
Since Biden can no longer claim with a straight face that inflation is “transitory,” Americans will now be offered the excuse from the administration and reliable sources like Sen. Elizabeth Warren (D-MA) that large corporations are to blame for inflation since they are grabbing profits. There will, of course, be no explanation as to why corporations only became “greedy” when Biden took office and no recognition that runaway government spending and money printing by the Fed are leading the way in creating too many dollars chasing after too few goods.