Bidenomics In Action: Inflation Continues To Wreak Havoc On The Economy

The Cumulative Effect Of Inflation Since President Biden Took Office Has Americans Continuing To Pay Significantly Higher Prices For Everyday Essentials

Since President Biden took office, inflation has increased 17.7%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Grocery (food at home) prices have increased 20.6%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Food away from home prices have increased 19%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Energy prices have increased 44.2%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Prices for fuel oil have increased 77%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Gasoline (all types) prices have increased 63.4%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Natural gas prices have increased 21.6%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Electricity prices have increased 26.6%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Rental prices for a primary residence have increased 17.3%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Prices for used cars and trucks have increased 25.3%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Prices for new vehicles have increased 20.3%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Furniture prices have increased 15.6%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Apparel prices have increased 13.1%. (Bureau of Labor Statistics, Accessed 10/12/2023)

• Airline fares have increased 22.6%. (Bureau of Labor Statistics, Accessed 10/12/2023)

‘Bidenomics In Action:’ September’s Consumer Price Index Report Showed ‘Inflation Remains Extremely Stubborn’

“Prices that consumers pay for a wide variety of goods and services increased at a slightly faster-than-expected pace in September, keeping inflation in the spotlight for policymakers.” (“Consumer Prices Rose 0.4% In September, More Than Expected,” CNBC, 10/12/2023)

• “The consumer price index, a closely followed inflation gauge, increased 0.4% on the month and 3.7% from a year ago, according to a Labor Department report Thursday. That compared with respective Dow Jones estimates of 0.3% and 3.6%. Headline inflation increased 0.6% in August.” (“Consumer Prices Rose 0.4% In September, More Than Expected,” CNBC, 10/12/2023)

“The fight against inflation is still a bumpy one, with high housing and gas costs straining families’ budgets and slowing the Federal Reserve’s fight to tame consumer prices.” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

• “Economists said the report didn’t signal significant progress…” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

“The takeaway is that inflation remains extremely stubborn, and policymakers have limited tools to address rising costs for gas, groceries and rent.” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

PRESIDENT BIDEN: “That’s Bidenomics in action.” (The White House, Press Release, 10/12/2023)

‘Prices Are Still Rising Faster Than Normal’

“[P]rices are still rising faster than normal, especially for basics like rent, groceries and gas.” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

“The latest inflation data highlight the risk that without a further slowdown in the economy, inflation might settle around 3%—well below the alarming rates that prompted a series of rapid Federal Reserve rate increases last year but still above the 2% inflation rate that the central bank has set as its target.” (“This Inflation Report Won’t Let the Fed Declare Victory,” The Wall Street Journal, 10/12/2023)

From Groceries, To Gas, And Transportation, Prices ‘Are Noticeably Higher Than In Recent Memory’: ‘I’m Trying To Think Of One Area Where Prices Have Eased And I Can’t Think Of Anything’

“For consumers, prices at the grocery store, gas station and car dealership are noticeably higher than in recent memory. A gallon of whole milk in August cost $3.93 on average in the U.S., according to the Labor Department. Though lower than earlier in 2023, it was still nearly $1, or 29%, more than in August 2019.” (The Wall Street Journal, 10/1/2023)

• “Prices for groceries and dining out are likely to remain elevated for some time...” (The Wall Street Journal, 10/1/2023)

• “A gallon of regular unleaded gasoline cost $3.84 on average in August, according to data provider OPIS, 46% higher than the roughly $2.63 a gallon four years earlier.” (The Wall Street Journal, 10/1/2023)

• “While the average price of a new vehicle declined over the summer from earlier in the year, it was $45,516 in September, initial estimates from J.D. Power show, compared with $33,822 the same month in 2019.” (The Wall Street Journal, 10/1/2023)

• “Fuel costs, though, remain much higher than pre-pandemic levels and have forced up shipping costs.” (The Associated Press, 10/12/2023)

“At Martin Chevrolet Buick GMC, a car dealership in Cleveland, Texas, demand is especially strong for vehicles with price tags in the high $20,000s because of their relative affordability, said President Janet Martin-Clark. ‘We actually have waiting lists on these low-price vehicles because people want them because the prices have gone up so much,’ she said.” (The Wall Street Journal, 10/1/2023)

• “Martin-Clark said she doesn’t foresee that vehicle prices overall will go back near where they were before the pandemic, because supplies are still choppy. Another reason: She herself is dealing with higher costs of doing business, such as workers’ pay and insurance, that eat into the dealership’s profitability.” (The Wall Street Journal, 10/1/2023)

• “‘I’m trying to think of one area where prices have eased and I can’t think of anything,’ Martin-Clark said.” (The Wall Street Journal, 10/1/2023)

“In Ohio, John Lamb is feeling plenty of cooling already. The president of Cleveland Express Trucking said the end of the year is usually ‘every carrier’s best quarter,’ as retailers and warehouses stock up for the holidays. There’s been a bit of a bump but nothing close to normal years. Meanwhile, tire costs are way up. Fuel prices bounce around and make it hard to plan for the future. Customers are haggling for cheaper rates. But Lamb can’t justify those cuts at the same time he’s trying to offset costs elsewhere. In some cases, the best answer is to wait and see how his slice of the economy shakes out.” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

• “‘I wanted to order three new tractors for next year, and I’m waiting now,’ Lamb said. ‘You need spares, because things break down or they’re in for maintenance. But I can’t justify buying equipment now.’” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

“That has created a burden for small-business people like Sandy Bialek, who owns Fatbat Brewing, a tap room in Hanover, Pennsylvania. Bialek said shipping costs have jumped for the malts that she buys by the pallet-load. She has had to raise the average price for a beer at her brewery to about $8, from about $6.50, to offset a range of higher costs. Her price increases, she said, have led a few of her regulars to quip, ‘What are you putting in this beer?’ (The Associated Press, 10/12/2023)

• “Many of Bialek’s working-class local customers have cut back on their visits or drink less when they do come by. More of her business is now coming from visitors to the area. ‘I think a lot of people are hunkering down and saving and waiting’ for inflation to pass, Bialek said. ‘There’s a lot of uncertainty.’” (The Associated Press, 10/12/2023)

‘The Average Family Is Spending About $700 More Per Month On The Same Goods And Services Relative To Two Years Ago’

“Even though overall prices aren’t going up as fast as they were in June 2022, they are still going up. Everything from eggs and car rentals to a night out at a restaurant is significantly more expensive than before the pandemic. The average family is spending about $700 more per month on the same goods and services relative to two years ago, according to Moody’s Analytics.” (“First On CNN: Two Out Of Three Workers Say Prices Are Still Rising Faster Than Wages, New Survey Shows,” CNN, 9/25/2023)

‘Housing Costs, Namely Rent, Were The Largest Driver Of September Inflation,’ Pricing Many Young Adults Completely Out Of The Housing Market

“Indeed, housing costs, namely rent, were the largest driver of September inflation, and have been a major strain on household budgets for well over a year.” (“Prices Rose 3.7 Percent In September As Fed Keeps Up Inflation Fight,” The Washington Post, 10/12/2023)

• “The median home sales price has surged 27% since the end of 2019, making owning a home particularly difficult for younger buyers such as millennials.” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

“The median age of a homebuyer in the U.S. is 36, the oldest-ever in data going back to 1981, according to the National Association of Realtors. At the same time, the share of income as a percentage of home prices is at its highest ever, according to government data that goes back to 1987.” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

“’Even though millennials are the largest adult generation in the U.S., they had a shrinking share of buyers in the market last year,’ NAR deputy chief economist Jessica Lautz wrote in a recent blog post. ‘This is at odds with what could happen as the largest number of millennials is at an age they traditionally have entered the market or at least had household formation. This year, baby boomers overtook millennials.’” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

• “Higher prices have been one problem. Higher interest rates are another, with 30-year mortgages running at an average 7.83% loan rate, according to Bankrate. Financial markets are on edge that the Federal Reserve could take rates even higher if inflation doesn’t cool. ‘This has very significant implications for wealth building,’ Crofoot added.” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

It's No Wonder ‘Americans Remain Deeply Unhappy About The Economy’

“…Americans remain deeply unhappy about the economy, often citing inflation. It continues to weigh on President Biden’s approval and re-election hopes.” (The Wall Street Journal, 10/1/2023)

“U.S. consumer sentiment in September fell slightly compared with August, as Americans’ assessment of current economic conditions retreated, a University of Michigan survey found.” (The Wall Street Journal, 10/1/2023)

“‘The fact that inflation has come down doesn’t mean prices have come down,’ said Tim Quinlan, senior economist at Wells Fargo. ‘For consumers, as long as prices remain elevated, which is what they are from their perspective, it still kind of weighs on confidence.’” (The Wall Street Journal, 10/1/2023)

“Joanne Hsu, director of the University of Michigan survey, said Americans are still adjusting to higher price levels after enjoying roughly a decade of low inflation leading up to the pandemic. ‘Consumers understand that we’re not going back to 2019, but they’re still trying to figure out what this new normal looks like,’ Hsu said. ‘People are still trying to figure out, can their incomes keep pace with inflation or is inflation just going to keep eroding their living standards?’” (The Wall Street Journal, 10/1/2023)

• “Economists typically don’t view deflation, or outright declines in prices, as desirable for an economy, said Joe Brusuelas, chief economist at RSM. Still, consumers are ‘angry that the price level has reset higher on a permanent basis’ for many items, he said.” (The Wall Street Journal, 10/1/2023)

Over Two-Thirds Of Employees ‘Say The Cost Of Living Is Outpacing Growth In Their Salary And Wages’

“The cost of living continues to stress out American workers, even as inflation eases from four-decade highs. Sixty-seven percent of employees say the cost of living is outpacing growth in their salary and wages, according to a Bank of America survey shared exclusively with CNN on Monday. That feeling has intensified, rising from 58% in February 2022.” (“First On CNN: Two Out Of Three Workers Say Prices Are Still Rising Faster Than Wages, New Survey Shows,” CNN, 9/25/2023)

“High inflation is a major reason why just 42% of employees say they feel financially well, according to the Bank of America survey. That’s the lowest percentage in the 13-year history of the survey. Likewise, 64% of employees say they are stressed about their finances. Among older Millennials, those aged 35 to 44, 80% report feeling stressed about money. And women are much more worried than men.” (“First On CNN: Two Out Of Three Workers Say Prices Are Still Rising Faster Than Wages, New Survey Shows,” CNN, 9/25/2023)

‘Americans' Feelings About The Economy Are Getting Worse’

AXIOS: ‘Americans' Feelings About The Economy Are Getting Worse’ (Axios, 9/27/2023)

“A few measures of consumer sentiment are flashing warning signs that show the American vibe shifting downward again. Why it matters: The data shows that the recent reversal in gas prices (heading up) and the stock market (heading down) is weighing on our mood. So is the continuing reality of living in a higher-price world.” (“Americans' Feelings About The Economy Are Getting Worse,” Axios, 9/27/2023)

• “[R]ent — along with the food, the gas and the appliances — is still too damn high. In a word: Inflation, which while heading lower in terms of its annual pace, is still far more than most people can stand and is making everything else look, if not terrible, at least less wonderful.” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

“‘You see all these high-level headline numbers, and those numbers don’t jibe with your economic reality,’ said Elizabeth Crofoot, senior economist at labor analytics firm Lightcast. ‘I don’t know if there’s a right or wrong, it’s just people’s reality, and aggregate economic statistics sometimes don’t reflect what people are living day to day.’” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

• “‘It’s the combination of inflation and shrinkflation,’ she said. ‘As a consumer, you feel like you’re being nickeled and dimed at every turn.’” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

• “‘Consumers just feel like they can’t win, and of course you’re going to feel down on the economy because of that,’ Crofoot said.” (“Even As Job Creation Surges, Americans Still Think The Economy Stinks. Here’s Why,” CNBC, 10/7/2023)

Thanks To Inflation, U.S. Small Business Sentiment Is On The Decline

“U.S. small business sentiment declined slightly again in September on continued concern over inflation and persistent labor shortages, a survey published on Tuesday showed.” (“US Small Business Sentiment Declines Moderately -NFIB,” Reuters, 10/10/2023)

• “‘Owners remain pessimistic about future business conditions, which has contributed to the low optimism they have regarding the economy,’ said Bill Dunkelberg, the NFIB’s chief economist. ‘Sales growth among small businesses has slowed and the bottom line is being squeezed, leaving owners few options beyond raising selling prices for financial relief.’” (“US Small Business Sentiment Declines Moderately -NFIB,” Reuters, 10/10/2023)