Biden’s Presidency: Nine Straight Months Of Inflation Exceeding 5% And The Most Expensive Gas Prices In U.S. History

Inflation In February Increased 7.9% Year-On-Year, ‘A Fresh 40-Year High’ And The Ninth Straight Month In Which Inflation Exceeded 5%

 (U.S. Senate Finance Committee Ranking Member, Press Release, 3/10/2022)

“U.S. consumer price gains accelerated in February to a fresh 40-year high, consistent with rapid inflation that’s become even more pronounced following Russia’s invasion of Ukraine. The consumer price index jumped 7.9% from a year earlier following a 7.5% annual gain in January, Labor Department data showed Thursday. The widely followed inflation gauge rose 0.8% in February from a month earlier, reflecting higher gasoline, food and shelter costs. … Excluding volatile food and energy components, so-called core prices increased 0.5% from a month earlier and 6.4% from a year ago.” (“U.S. Inflation Hit Fresh 40-Year High of 7.9% Before Oil Spike,” Bloomberg, 3/10/2022)

February marked the NINTH consecutive month in which inflation topped 5 percent. (Bureau of Labor Statistics, Accessed 3/10/2022)

• February also marked the THIRD consecutive month in which inflation rose at least 7 percent. (Bureau of Labor Statistics, Accessed 3/10/2022)

Over The Past Year, Prices For Goods And Services Essential To Everyday Life Have Skyrocketed

The price of all items increased 7.9% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 3/10/2022)

• Prices for all items less food and energy increased 6.4% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 3/10/2022)

• Prices for all items less food, shelter, energy, and used cars and trucks increased 5.5% year-on-year, the largest increase since 1991. (Bureau of Labor Statistics, Accessed 3/10/2022)

Food prices increased 7.9% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 3/10/2022)

Food at home (grocery) prices increased 8.6% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 3/10/2022)

Prices for food away from home increased 6.8% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 3/10/2022)

Prices for new cars and trucks increased 12.4% year-on-year, the largest increase ever. (Bureau of Labor Statistics, Accessed 3/10/2022)

Prices for housing increased 5.9% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 3/10/2022)

Prices for rent of shelter increased 4.8% year-on-year, the largest increase since 1991. (Bureau of Labor Statistics, Accessed 3/10/2022)

Prices for apparel increased 6.6% year-on-year, the largest increase since 1980. (Bureau of Labor Statistics, Accessed 3/10/2022)

Americans Slammed By ‘Surging Costs For Gas, Food And Housing,’ Part Of ‘The Fastest Pace Of Inflation In 40 Years’

“Prices increased 7.9 percent in the year through February, the fastest pace of inflation in 40 years, as gas prices increased and a wide array of goods and services grew more expensive. The rising cost of gas, food and rent all contributed to the increase, the Bureau of Labor Statistics said.” (“Inflation Climbs To 7.9 Percent, A New Four-Decade High,” The New York Times, 3/10/2022)

“Propelled by surging costs for gas, food and housing, consumer inflation jumped 7.9% over the past year, the sharpest spike since 1982 and likely only a harbinger of even higher prices to come. The increase reported Thursday by the Labor Department reflected the 12 months ending in February and didn’t include most of the oil and gas price increases that followed Russia’s invasion of Ukraine on Feb. 24. Since then, average gas prices nationally have jumped about 62 cents a gallon to $4.32, according to AAA.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

“From January to February, nearly every category of goods and services got pricier. Grocery costs jumped 1.4%, the sharpest one-month increase since 1990, other than during a pandemic-induced price surge two years ago. The cost of fruits and vegetables rose 2.3%, the largest monthly increase since 2010. Gas prices spiked 6.6%, clothing 0.7%. For the 12 months ending in February, grocery prices leapt 8.6%, the biggest year-over-year increase since 1981, the government said. Gas prices are up a whopping 38%. And housing costs have risen 4.7%, the largest yearly jump since 1991.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

“[E]ven for some services unaffected by the pandemic, like rents, costs are also surging at their fastest pace in decades. Steady job growth and high home prices are encouraging more people to move into apartments, elevating rental costs by the most in two decades. Apartment vacancy rates have reached their lowest level since 1984.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

‘The Quickest Inflation In Most Americans’ Lifetimes’ Has ‘Hit Consumers In The Pocketbook, Causing Confidence To Fall And Stretching Household Budgets’ With The Burden ‘Falling Intensely On Lower-Income Households’

“Rapidly climbing prices have hit consumers in the pocketbook, causing confidence to fall and stretching household budgets…. [T]he burden is falling intensely on lower-income households, which devote a big chunk of their budgets to daily necessities that are now swiftly becoming more expensive.” (“Inflation Climbs To 7.9 Percent, A New Four-Decade High,” The New York Times, 3/10/2022)

“The quickest inflation in most Americans’ lifetimes is also a problem for the Federal Reserve, which is in charge of achieving price stability.” (“Inflation Climbs To 7.9 Percent, A New Four-Decade High,” The New York Times, 3/10/2022)

Americans Are Now Losing Even More Of Their Paychecks To Inflation, With Year-On-Year Real Average Weekly Earnings Decreasing 2.3%

“Real average hourly earnings decreased 2.6 percent, seasonally adjusted, from February 2021 to February 2022. The change in real average hourly earnings combined with an increase of 0.3 percent in the average workweek resulted in a 2.3-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, Accessed 3/10/2022)

“For most Americans, inflation is running far ahead of the pay raises that many have received in the past year, making it harder for them to afford necessities like food, gas and rent.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

• “In the final three months of last year, wages and salaries jumped 4.5%, the sharpest such increase in at least 20 years. Those pay raises have, in turn, led many companies to raise prices to offset their higher labor costs.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

‘Gas Prices Are The Most Expensive In US History,’ Piling More Pain On Americans

“As of Tuesday morning, the average national price for a gallon of regular gasoline touched $4.17, according to AAA, the highest price ever, not accounting for inflation. That was up from $4.07 on Monday and $3.61 a week earlier. The previous high was $4.11 on July 17, 2008, according to AAA. That would come to around $5.25 today when adjusted for inflation.” (“Gas Prices Are The Most Expensive In US History, Breaking Record From 2008,” USA Today, 3/8/2022)

“[G]as also mattered a lot. Surging prices at the pump accounted for about a third of February’s increase in the Consumer Price Index, the government said.” (“Inflation Climbs To 7.9 Percent, A New Four-Decade High,” The New York Times, 3/10/2022)

Economists Worry That Continued High Gas Prices Could Boost Inflation To As Much As 9% In The Next Two Months And Note That High Gas Prices Tend To Reduce Consumer Spending, Which Would Weaken The Economy, A Pattern ‘Akin To The “Stagflation” Dynamic That Made The Economy Of The 1970s Miserable For Many Americans’

“Should gas prices remain near their current levels, Eric Winograd, senior economist at asset manager AllianceBernstein, estimates that inflation could reach as high as 9% in March or April.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

“Soaring energy costs pose a particularly difficult challenge for the Fed. Higher gas prices tend to both accelerate inflation and weaken economic growth. That’s because as their paychecks are eroded at the gas pump, consumers typically spend less in other ways. That pattern is akin to the ‘stagflation’ dynamic that made the economy of the 1970s miserable for many Americans.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

‘I’m On A Shoestring Budget … For Anyone Who Doesn’t Make A Lot Of Money, You Have To Be Intelligent And Start Cutting Corners’

“Nitin Kumar, a Herndon, Va., resident who works at a financial technology company, was grateful to get a ‘substantial raise’ at the beginning of 2022, but after seeing the rate of inflation, has questioned how far his money really goes. He is considering whether he should shop at a discount grocery store or take other cost-saving measures. ‘I need to start considering things I can do myself—like walk more instead of driving,’ Mr. Kumar said. ‘It’s not a sustainable practice to spend more.’” (“U.S. February Consumer Prices Rose 7.9% From Year Earlier,” The Wall Street Journal, 3/10/2022)

“For people like Timothy Gutbrod, 61 and from Albany, the rapid inflation has caused lifestyle changes. Mr. Gutbrod, who formerly worked as a stage actor, has been a driving instructor since March 2020, and the job pays him a little more than $30,000 per year. As higher gas prices have made his commute and everyday purchases more expensive, he has been eating out less. For someone who was a longtime Manhattanite, that’s a real loss, Mr. Gutbrod said. He used to enjoy three restaurant brunches or dinners each week. Now it’s more like one every two weeks. ‘I used to go on relaxing drives,’ he said, but now joy rides are unaffordable. ‘I’m on a shoestring budget, and I work pretty hard. For anyone who doesn’t make a lot of money, you have to be intelligent and start cutting corners.’” (“Inflation Climbs To 7.9 Percent, A New Four-Decade High,” The New York Times, 3/10/2022)

Small Businesses Are Also Struggling With Soaring Costs For Labor, Fuel, And Food

“Small business people say in surveys that [inflation is] their primary economic concern, too.” (“US Inflation Soared 7.9% In Past Year, A Fresh 40-Year High,” The Associated Press, 3/10/2022)

“John Merritt, vice president of Elaine Bell Catering in Napa, Calif., has been pleased to see the recovery of his business after a tough two years in which in-person events dried up and planning for the future seemed impossible. But the rising cost of labor and the lack of price stability for food and gas has hurt business. ‘We’re able to pass some costs on to customers, but a lot of people were contracted at lower prices,’ and rising costs have eaten up his profit margin, Mr. Merritt said. To hedge against future price increases, Elaine Bell Catering has started to include an inflation rider in new contracts. ‘We’re giving them the best price we can if they were having their event today,’ Mr. Merritt added. ‘But where we are booking things 18 months out commonly, we have to price this more like a long-term labor contract that has a CPI adjustment.’” (“U.S. February Consumer Prices Rose 7.9% From Year Earlier,” The Wall Street Journal, 3/10/2022)

“In Missouri, Sharon Burnett is staring down rising energy prices as the manager of St. Louis Trolley, which takes bookings for local weddings, corporate events and tours. Burnett said the cost of fuel had been rising well before the war in Ukraine. Plastic parts for her company’s trolleys have also been caught up in global supply chain snarls. Customers are pouring in, and so far, Burnett has managed to keep prices steady. But higher gas prices and a war an ocean away could soon force her hand. ‘If gas goes up to $5 or $6 a gallon, we’re going to have to raise prices, but right now, we’re holding on,’ Burnett said.” (“Prices Climbed 7.9% In February, Compared With Last Year, With War In Ukraine Likely To Push Inflation Even Higher, The Washington Post, 3/10/2022)