By Spencer Brown | Townhall.com
AP Photo/Evan Vucci
Despite President Biden's fantasyland insistence that inflation is "down" and his administration's claims that prices are "falling," the Consumer Price Index (CPI) print for January 2024 showed that not only is inflation still moving up, it's accelerating faster than economists predicted. Again.
As the Bureau of Labor Statistics (BLS) reported on Tuesday morning, CPI inflation rose 0.3 percent in January for a 3.1 percent increase over last year — and 17.9 percent higher since Biden took office in January 2021.
The main driver of January's "hotter than expected" inflation was a common culprit: the cost of shelter. That metric alone accounted for more than two-thirds of January's inflation according to the BLS release.
Core CPI inflation — which excludes more volatile food and energy indexes — advanced even more over the months at 0.4 percent growth for a 12-month increase of 3.9 percent.
Notably, both headline and core CPI numbers are more than the Federal Reserve's target rate of just 2.0 percent inflation, yet the Federal Open Market Committee (FOMC) continues to tease the possibility of interest rate decreases in 2024 while inflation has remained well above its goal for years.
Job Creators Network CEO Alfredo Ortiz said January's CPI report shows "inflation remains historically high" and is "nothing to cheer about" even though President Biden and members of his administration are likely to do just that. "Talk to any American going to the grocery store, hardware store, or pharmacy, and they'll tell you prices continue to rise at a painful rate. Rents, car payments, and home and auto insurance have gone through the roof," he emphasized.
"Core inflation didn't budge and continues to rise at twice the Federal Reserve's target rate," said Ortiz. "Moreover, the inflation damage has already been done."
"As a result, Americans are facing a cost of living crisis," Ortiz continued. "This is a direct result of bad Democratic policies like reckless spending and opposition to cheap energy. The only way to bring prices back under control for the long term is by supporting candidates who believe in free enterprise, domestic energy production, deregulation, tax cuts, and the American dream."
As Katie reported at the end of January, Treasury Secretary Janet Yellen couldn't offer much hope for Americans struggling to make ends meet after more than two straight years of negative real wages and still-rising inflation.
Never mind, apparently, the Biden administration's insistence toward the beginning of his term that inflation was merely "transitory" and White House Press Secretary Karine Jean-Pierre's claim that prices were "falling" at the end of January — the month in which it was just confirmed prices rose faster than expected.
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RELATED ARTICLE
Say It Ain't So, Joe! January Inflation Rises More Than Expected as Soaring Prices Continue
By Mike Miller | RedState.com
In the aftermath of the release of the Hur Report last Wednesday, it's been all downhill for Joe Biden. On Tuesday, it got even worse — but let's first back up to Super Bowl Sunday for a minute.
While Biden refused for the second year in a row to sit for a traditional Super Bowl interview, he did find time to sit for a ridiculous, fact-challenged lecture about how "big consumer brands" are ripping off shoppers. As RedState's Jennifer Van Laar reported, Biden's shtick was hilarious in its dishonesty from the outset.
America, here's Joe— babbling about "shrinkflation."
While you were Super Bowl shopping, did you notice smaller-than-usual products where the price stays the same? Folks are calling it Shrinkflation and it means companies are giving you less for every dollar you spend. I’m calling on the big consumer brands to put a stop to it.
No, "folks" aren't calling it "shrinkflation," Joe — you and your administration are calling it "shrinkflation" in a transparent attempt to blame manufacturers for continuing inflation and high prices.
P.S. Joe: Affected manufacturers aren't trying to pull a fast one on shoppers; they're trying to keep prices down. Sure, they could leave products the same size and raise prices accordingly. Would that make you happy?
So as Biden continues to tell his fairy tale about prices coming down, the Department of Labor said otherwise on Tuesday. The Consumer Price Index (CPI), a broad measure of the price of everyday goods including gasoline, groceries, and rent, rose higher than expected in January — 0.3 percent — from the previous month. Consumer prices climbed 3.1 percent year-over-year from 2023.
Here's more:
Economists surveyed by Dow Jones had been looking for a monthly increase of 0.2% and an annual gain of 2.9%. Excluding volatile food and energy prices, so-called core CPI accelerated 0.4% in January and was up 3.9% from a year ago. The forecast had been for 0.3% and 3.7% respectively.
Shelter prices, which comprise about one-third of the CPI weighting, accounted for much of the increase. The index for that category rose 0.6% on the month, contributing more than two-thirds of the headline increase, the BLS said. On a 12-month basis, shelter increased 6%.
Food prices moved higher as well, up 0.4% on the month. Energy helped offset some of the increase, down 0.9% due largely to a 3.3% slide in gasoline prices.
Stock market futures slid sharply following the release. Futures tied to the Dow Jones Industrial Average were off more than 250 points and Treasury yields surged higher.
Not quite the rosy picture the White House desperately tries to paint, is it?
Moreover, as I reported earlier on Tuesday, economist and New York Times columnist Paul Krugman absurdly claimed in a Sunday op-ed:
Economically, we’ve had a year of strong growth and plunging inflation — and aside from committed Republicans, who see no good, hear no good, and speak no good when a Democrat is president, Americans appear to be recognizing this progress.
Look, these people are neither stupid nor do they think you are. What they do think — make that, know — is that a majority of low-information Democrat voters believe everything they say or write without question. Hence, Democrat politicians and politicos don't give a damn what you think — you don't matter to them.
More inflation data will be released on Friday with the January Producer Price Index (PPI), which is often a predictor of future inflation because it shows prices that are early in the pipeline and often passed on to consumers.
Meanwhile, my fellow Americans, beware of the evils of "shrinkflation!"
