WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation as measured by the consumer price index (CPI) on all items increased by 3.1% for the 12 months ending in January—down from 3.4%. Core inflation, which excludes volatile energy and food prices, held steady at a pace of 3.9% in January from a year prior. The shelter and food indices increased 6% and 2.6%, respectively, over the past 12 months. Real wages decreased by 0.1%.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at IWF, issued the following statement:
“The key takeaway from today’s report is that inflation is sticky; prices are stuck at unaffordable levels. A slight slowdown in the pace of inflation last month was positive, but it won’t register as much relief for everyday Americans. The overall prices they are paying now are still significantly higher than before the pandemic or before early 2021.
“Everyday household expenses, such as dining out, groceries, and gasoline, remain unaffordable. Even worse, real wage growth is back in negative territory once again. Americans are using credit cards to stay afloat, which has driven credit card debt to a record $1.1 trillion.
“Many people can no longer rely on one paycheck to make ends meet. Women are more stressed than men about their finances and are more likely to work multiple jobs. Workers are increasingly tapping into freelance work to earn primary or supplemental income. Instead of fighting inflation, the Biden administration is poised to enact new restrictions on side hustles, gig work, and self-employment. The new labor rule limiting independent contracting nationwide will rob women of flexible work opportunities and households of vital income-generating opportunities at the time that they need them most.”
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Independent Women’s Forum is dedicated to developing and advancing policies that aren’t just well intended but actually enhance people’s freedom, choices, and opportunities.
Independent Women’s Forum’s Center for Economic Opportunity (CEO) aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.