Another Record Inflation Rise Exposes The Biden Administration’s Continued Delusion

Another Monthly Inflation Indicator Hit Its ‘Biggest Annual Increase’ In Over A Decade

“Prices that producers get for final demand goods and services surged in August at their highest annual rate since at least 2010, the Labor Department reported Friday. The producer price index rose 0.7% for the month, above the 0.6% Dow Jones estimate, though below the 1% increase in July. On a year-over-year basis, the gauge rose 8.3%, which is the biggest annual increase since records have been kept going back to November 2010. That came following a 7.8% move higher in July, which also set a record.” (“Producer Inflation Accelerated In August, As Wholesale Prices Rose Record 8.3% From A Year Ago,” CNBC, 9/10/2021)

• “The data comes amid heightened inflation fears fed by supply chain issues, a shortage of various consumer and producer goods and heightened demand related to the Covid-19 pandemic. Federal Reserve officials expect inflationary pressures to ease through the year, but they have remained stubbornly persistent, with Friday’s numbers indicating that the trend likely will continue.” (“Producer Inflation Accelerated In August, As Wholesale Prices Rose Record 8.3% From A Year Ago,” CNBC, 9/10/2021)

‘[W]hen Americans Are Asked To Name The Top Economic Problem Facing Their Family Today, Rising Prices And The Cost Of Living Are The Overwhelming Top Issue’

“[A]ccording to a new CNN poll conducted by SSRS … a rising share of Americans … say things in the US are going badly and that the economy is in poor shape, with increased worries about the coronavirus, the economy and crime. The new poll finds 69% of Americans say things in the country today are going badly …” (“Americans Turn Pessimistic Amid Concerns Over Economy And Coronavirus,” CNN, 9/10/2021)

• “And 62% say that economic conditions in the US are poor, up from 45% in April and nearly as high as the pandemic-era peak of 65% reached in May 2020.” (“Americans Turn Pessimistic Amid Concerns Over Economy And Coronavirus,” CNN, 9/10/2021)

• “[W]hen Americans are asked to name the top economic problem facing their family today, rising prices and the cost of living are the overwhelming top issue, with 43% naming something related to inflation or the cost of living as their most pressing problem.” (“Americans Turn Pessimistic Amid Concerns Over Economy And Coronavirus,” CNN, 9/10/2021)

“77% of Americans say they are worried about the state of the economy in their community, up sharply from 58% who said the same last summer…. [M]ajorities across parties express concern about the economy (70% among Democrats, 76% among independents), and overall assessments of the state of the economy have worsened since the spring. In April, 54% said the economy was in good shape, the first time that figure had crossed 50% since before the start of the pandemic, but now, only 38% say the economy is in good shape, with declining ratings coming from both Democrats and Republicans.” (“Americans Turn Pessimistic Amid Concerns Over Economy And Coronavirus,” CNN, 9/10/2021)

Meanwhile, The Biden Administration Continues To Deflect And Deny The Serious Impact Inflation Is Beginning To Have On The Economy

NATIONAL ECONOMIC COUNCIL DIRECTOR BRIAN DEESE: “And if we — if we unpack that, one of the interesting findings of the report that we put out today is that about half of the overall increase in grocery prices can be attributed to a significant increase in prices in three products: in beef, in pork, and in poultry.  And in beef and in pork, we’ve seen double-digit increases in prices over the last couple of months. In fact, if you look at the category that is grocery prices, what economists call ‘food at home’ — so food that is being purchased to eat at home — in a number of areas, we’ve seen — if you take out those three categories, we’ve actually seen price increases that are more in line with historical norms.” (Brian Deese, Press Briefing, 9/08/2021)

• NEC DIRECTOR DEESE: “If we were to compare to where we were a year ago, we’re in a much better place than we were a year ago. Prices have increased but that’s because the economy is not shut down.” (MSNBC, 8/12/2021)

COMMERCE SECRETARY GINA RAIMONDO: “There still isn’t anything to suggest there’s widespread inflation. Two-thirds of the inflation we’re seeing relates to limited number of products, all related to the pandemic.” (CNBC, 9/09/2021)

WHITE HOUSE PRESS SECRETARY JEN PSAKI: “I would note — and I know noted this previously — but as we look at averages, the rate of inflation has actually come down, and we continue to be at a projection where it is going to come back to normal rates next year.” (Press Secretary Jen Psaki, Press Briefing, 8/11/2021)

Yet Even Federal Reserve Chairman Jerome Powell Has Admitted, ‘We’re Experiencing A Big Uptick In Inflation’

FEDERAL RESERVE BOARD CHAIRMAN JEROME POWELL: “I think we’re experiencing a big uptick in inflation. Bigger than many expected. Bigger than certainly, I expected.” (Senate Banking, Housing and Urban Affairs Committee Hearing, 7/15/2021)

• “The way Fed chair Jerome Powell is talking about inflation seems to be evolving. … Powell and his colleagues have argued for months that the forces currently boosting inflation have been ‘transitory.’ … Powell’s most recent written statement referencing inflation made no reference to ‘transitory.’ He also never used the word during his lengthy Q&A with committee members. The word ‘temporary’ has come up, though.” (“Jerome Powell’s Newest Evolution,” Axios, 7/16/2021)

FLASHBACK: As ‘Most Americans Report Feeling [Inflation’s] Effects In The Price Of Basic Goods And Services,’ 59% Of Voters Point To The Biden Administration’s Policies As Being Responsible

“Nearly 3 in 5 voters said that the Biden administration’s policies are to blame for the 13-year high in inflation, including 39 percent who said the policies are ‘very responsible’ for the milestone. At 82 percent, Republicans were the driving force behind those figures, but a large share of Democrats also held the Biden administration’s policies responsible for inflation levels, at 41 percent.” (“Voters’ Inflation Worries Emerge as an Economic Weak Spot for Biden,” Morning Consult, 7/28/2021)

CBS NEWS POLL: “[W]ith spending comes the specter of inflation, and most Americans report feeling its effects in the price of basic goods and services. Large majorities of Americans say they are paying more these days for gasoline, groceries and food, as well as electricity and power. Those across all income levels say they have noticed increasing prices for these items.” (“Biden Nets Positive Marks For Handling Pandemic, But Vaccine Resistance, Delta Concern Remains - CBS News Poll,” CBS News, 7/19/2021)

“An overwhelming majority of Americans are concerned about inflation, and they’re not uniformly confident in the government’s ability to reel it in, according to a new Harvard CAPS/Harris poll shared exclusively with The Hill. In total, 85 percent of respondents say that they’re at least somewhat concerned about inflation, including 45 percent who say that they’re ‘very concerned.’ The rising worries come on the heels of news that the consumer price index rose 0.6 percent last month as the economy continues to recover from the coronavirus pandemic.” (“Poll: Concern About Inflation Rises As Economy Recovers From Pandemic,” The Hill, 6/22/2021)

“A top party pollster and senior adviser to the Biden political team is urging Democrats to confront the problem of rising prices — which she says is starting to bite with voters. … Celinda Lake, who polled for the Biden presidential campaign and still advises Team Biden, told Axios that worries about inflation are coming through loud and clear in both public polls and her own focus groups. … Lake said Democrats can’t afford to ignore the inflation issue or hope it goes away; they need to tackle it head on. She’s advised Democratic elected officials to make clear to voters that they understand their lived experiences of higher costs of health care and daily goods — and that they have ideas for how to make the cost of living more affordable.” (“Biden Pollster’s Inflation Warning,” Axios, 7/22/2021)