By: Konrad Holden
Inflation spiked 5.4% over the last 12 months. This is the highest inflation surge in a 12 month period since August of 2008, and an even higher surge than economists had predicted. But more than that, many economists have projected that inflation will continue to soar for years to come if we continue on our current path.
The “Biden Boom” isn’t happening according to economists. And apparently, it’s going to get worse.
Biden’s Labor Department released a report on Tuesday revealing that inflation in the last 12 months is higher than any similar period since August 2008. The Consumer Price Index, a price measure of the average household’s expenses, rose 0.9% between May and June.
Various industries contributed to this rise. Used car and truck sales have gone up 45% over the last 12 months leading to a huge rise in used vehicle prices. This has been caused, in part, by the global shortage of semiconductors used to make new vehicles.
Average fuel prices have gone up, too. The average gallon of gas is $1 more than it was at this time last year.
In the midst of this, the Biden administration has chalked it up to the effects of the coronavirus and celebrated a mere $0.16 decrease in 4th of July food prices. The only problem is that a recent Wall Street Journal survey and another survey by the New York Fed showed that economists expect prices to continue rising.
“Neglecting inflation leaves global economies sitting on a time bomb.” - David Folkerts-Landau, Deutsche Bank’s Chief economist
“We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.” - Joel Naroff, chief economist at Naroff Economics