Inflation surges despite reassurances from the Biden administration that the economy is on the right path. We were living through one of the greatest economic times this country has ever seen under President Trump.
Then came the China virus pandemic and the economy took a drastic hit. Luckily enough President Trump managed to mitigate damage keeping the economic downfall from becoming a complete collapse.
Fast forward roughly 6 months and after two vaccines, inflation surges and we are watching stagnant economy. That stagnant economy is now being met with surging inflation rates.
Fox News reports:
The Labor Department said Thursday that the consumer price index in May rose 5% year over year, hotter than the 4.7% increase that was anticipated. The reading was above last month’s 4.2% print.
Prices jumped 0.6% month over month, quicker than the 0.4% increase that was expected by analysts surveyed by Refinitiv.
The annual data has a “base effects” skew due to the decline in prices that occurred at the start of the pandemic.
Used car and truck prices surged 7.3%, accounting for about one-third of the index’s gain. Food prices, meanwhile, rose 0.4% matching April’s increase. Energy prices were unchanged from April as a decline in gasoline prices was offset by an increase in natural gas and electricity costs.
Core CPI, which excludes food and energy, in May rose 3.8% annually, the most since June 1992. Core prices increased 0.7% month over month, outpacing the 0.4% increase that was expected. The index rose 0.9% in April.
Upward pressure on prices has appeared in wide swaths of the economy as businesses struggle to find materials due to supply chain bottlenecks that occurred as a result of the pandemic. Some businesses are also struggling to fill jobs because supplemental unemployment benefits have encouraged workers to stay home.
Supply chain bottlenecks and the struggle to fill jobs are what seem to be preventing the economic recovery we all need. First and foremost, we need to put an end to the supplemental unemployment payments as well as the stimulus payments.
It’s simple, stop incentivizing people to not work especially given the fact that there are millions of open jobs waiting to be filled!
How do you think we get back to full employment, let me know in the comments below!