Keystone Today

U.S. Senate Minority Leader Mitch McConnell (R-KY) recently published a statement about high inflation rates, saying that Americans are paying 13.2% more since President Joe Biden took office.

“Since President Biden took office, inflation has shot up a staggering 13.2%,” McConnell wrote on Sept. 20. “For the average American household, this translates to hundreds and hundreds of extra dollars every month… In my home state of Kentucky, for example, the Democrats’ inflation has forced proud, hardworking families to ask for help putting food on the table. In some cases for the first time in their lives… This is what it happens when Washington Democrats put their own priorities ahead of the people’s.”

According to a Sept. 13 U.S. Bureau of Labor Statistics report, the rate of inflation over the last 12 months is at 8.3%. In the last year, food costs rose 11.4%, energy costs 23.8%, gas prices 25.6% and new vehicles 10.1%. The BLS also released inflation numbers for the Philadelphia/Camden/Wilmington area. This shows an 8.1% consumer price index increase in August, compared to 2021. Food prices went up 12.2%, and energy prices increased 29.5%.

President Joe Biden celebrated the passing of the Inflation Reduction Act with members of Congress and White House staff on the South Lawn on Sept. 13. The celebration took place the same day the bureau released the Consumer Price Index figures.

“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, according to Politico. 

A Gallup poll found that 56% of Americans say “price increases are causing financial hardship,” which is an increase from 49% in January and 45% in November of last year. The poll took place from Aug. 1 to 22, and 1,500 Americans participated. The survey found that 74% are experiencing “severe or moderate hardship.” It also reported that middle-income and upper-income households are struggling more than in 2021. Republicans are more likely to mention the hardship than Democrats, Gallup added. A more recent Gallup poll showed that inflation and the economy are top issues in the upcoming elections.

According to CNN Business, 71% of workers say their wages aren’t keeping up with inflation, and that the cost of living is “outpacing their salary.” Further, a Bank of America poll found that 62% of workers are worried about finances even with a job.

“Stubbornly high inflation is eroding paychecks and darkening the mood of consumers,” the CNN report states. “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, said in the CNN report that inflation is one of the main reasons people are worried.

EJ Antoni, a research fellow in regional economics with the Heritage Foundation Center for Data Analysis, found that Americans have lost $4,200 in income due to inflation and high interest rates since Biden took office.

“Simply put, working Americans are $4,200 poorer today than when Biden took office,” Antoni said in a Heritage news release. “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.”

According to Smart Asset, some economists feel inflation is due to increased governmental spending. It can also stem from federal interest rates, supply chain issues and monetary supply. Over the last century, inflation has gone up 3% each year on average, but has been “surging” in 2021, the Smart Asset report states.

The Consumer Confidence Index “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,” according to the Organization for Economic Cooperation and Development. According to the Conference Board report on Sept. 27, CCI rose 4.4 points in September and sits at 108, which is compared to 113.8 in January 2021.