Bad Inflation News Spells Trouble for White House

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President Joe Biden’s approval rating is only thirty three percent in the latest Quinnipiac University poll. That’s a 3% decrease since November and a 17% drop since February 2021, when he took office for a full month. Further research found that 54% of those polled believe the economy is deteriorating. When the December inflation report is considered, it’s no surprise.

The latest Consumer Price Index (CPI) report from the US Department of Labor was released on January 12th. The White House had hoped for encouraging news, but the study revealed a 7% increase in the ‘all things’ index during the previous 12 months, ending in December 2021.

Since 1982, this figure has changed the most in a 12-months. Furthermore, inflation for all products except food and fuel increased by 5.5 percent, the highest annual increase since 1991. Year on year, the CPI for urban consumers grew by 0.5 percent in a single month.

This number fell from July to September, reaching a low of 0.3 percent in August. Analysts attribute the fall to a rise in consumer confidence, which coincided with a reduction in COVID-19 regulations.

Investors are also afraid, according to analysts, that continuing high inflation rates may force the Federal Reserve to raise interest rates to compensate.

Perhaps it’s time for Biden to drop his multibillion-dollar Build Back Better spending proposal and focus on the economy instead.