Severe Inflation Contradicts White House Claims

The White House has been asserting that the worst of the recent inflation crisis is behind the United States. However, recent inflation data lends support to Republican critics of President Biden’s handling of the economy.

January consumer prices spiked over those in December 2022, underscoring the key economic issue to many Americans. The increase in the month-to-month inflation rate also undermined one of the president’s major arguments about his stewardship of the economy.

Conservative critics believe that President Biden’s assertions that the inflation situation is getting better are not true.

The rampant inflation of the last two years has had several effects on the spending habits of ordinary taxpayers. First, the cost of new cars has reached levels that average Americans cannot afford.

The cost of a new vehicle now averages nearly $50,000. Consumers pay not only the initial cost of the vehicle but also sharply increased interest rates to pay the car or truck off. The combination is often out of reach for the average consumer.

With the average car payment reaching almost $800 per month, this is a severe crimp on workers who make a median wage of just $1,085 per week.

Consumer spending is divided on more than just transportation, and the inflation picture has been no easier.

Food, in particular, has been a major source of inflation with the cost of groceries and prepared meals spiking sharply. The recent increase in the price of eggs has been especially difficult for the average American’s pocketbook.

Other staple foods increased dramatically in price over the last year. This includes a sharp rise in the price of chicken, milk, coffee, butter, bread, flour and more. The price to prepare food at home is increasing at a pace that many Americans are forced either to spend more or cut back.

Conservative critics point to record spending by the Biden White House as a major contributor to the current inflation situation. They argue that the major increase in federal spending and poor policy by the Federal Reserve are most responsible for recent price hikes.