Despite a brief break from the worst wave of inflation in over four decades in the United States, “Bidenflation” is back with a vengeance.
Compared with a month earlier, the Bureau of Labor Statistics’ Consumer Price Index rose one-tenth of a percentage point. On a year-over-year basis, the CPI was up 8.3 percent.
Both were higher than expected. Economists had expected CPI to rise 8.1 percent compared with a year ago. The month-over-month figure was expected to down one-tenth of a percentage point. In July, the Labor Department said CPI was up 8.5 percent compared with a year earlier and unchanged compared with June. Prices were up 9.1 percent in June compared with a year earlier and rose 1.3 percent compared with the prior month.
The economy has been experiencing the worst inflation in over forty years. Not counting this spring’s figures, the August year-over-year figure is the highest since 1981. The August inflation was widespread, affecting everything from food, to new cars and other durable goods, to services, to shelter. Gasoline prices were the exception, falling sharply compared with July.
The figures upend hopes that inflation may have peaked and already be set to steadily decline. President Joe Biden in Boston yesterday indicated that he expected inflation was now in the rearview mirror.
Biden claimed, “The American people should have confidence that we’re on the right track, that we’re seeing real progress.”