We see the effects of inflation everywhere we go: at the gas pump, at the grocery store, and when it comes to buying the gifts on our Christmas lists. But the Biden administration wants you to believe that inflation is transitory, while the administration’s willing accomplices in the media want you to believe that it’s actually good for you.
That ivory tower, “let them eat cake” mindset that we’re seeing from the White House and its environs isn’t much comfort to the everyday consumer like you and me who sees rising prices and wonders how long they’ll wreak havoc on our lives.
The latest Consumer Price Index data confirms your suspicions: inflation is everywhere.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in November on a seasonally adjusted basis after rising 0.9 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.8 percent before seasonal adjustment.
The monthly all items seasonally adjusted increase was the result of broad increases in most component indexes, similar to last month. The indexes for gasoline, shelter, food, used cars and trucks, and new vehicles were among the larger contributors.
A nearly 7% increase over the past year doesn’t sound transitory, does it?
The increase is the fastest rise since 1982, or if you leave out the energy and food sectors, where prices are most apt to fluctuate, it’s the biggest jump in so short a time since 1991.
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Breaking out those specific areas gives a fascinating glimpse into just how food and energy are driving this round of inflation:
The index for all items less food and energy rose 4.9 percent over the last 12 months, while the energy index rose 33.3 percent over the last year, and the food index increased 6.1 percent. These changes are the largest 12-month increases in at least 13 years in the respective series.
And taking a deeper dive into food prices reveals even more:
All of the six major grocery store food group indexes increased over the period. The index for meats, poultry, fish, and eggs increased 12.8 percent, with the index for beef rising 20.9 percent. The index for dairy and related products posted the smallest increase, rising 1.6 percent over the last 12 months. The remaining major grocery store food group indexes posted increases ranging from 4.0 percent (fruits and vegetables) to 5.7 percent (other food at home).
Additionally, prices for “food away from home,” or eating out, increased 5.8%.
But the most devastating price increases have come in the energy sector:
The gasoline index rose 58.1 percent over the last year, its largest 12-month increase since the period ending April 1980. The index for natural gas rose 25.1 percent over the last 12 months, and the electricity index rose 6.5 percent.
Over at Axios, Courtenay Brown pointed out that, “Until recently, high prices have been shrugged off as temporary, thanks to pandemic-era quirks (read: messed-up supply chains) that are expected to ease.” But, she notes, price increases have expanded to parts of the economy that the pandemic can’t be blamed for.
There’s no end in sight for this inflation, and we’ll continue to see it everywhere we go. So the next time you hear a politician or member of the media remind you that inflation is no big deal, or when the Biden administration tries to answer inflation with big government spending that will make things worse, you can remind yourself of the truth. And know that you have the power to make changes at the ballot box.
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