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 2.5% for the 12 months ending in August—above the Federal Reserve’s 2% target. Prices overall are up 20% since January 2021—the start of the Biden-Harris White House.
Core inflation, which excludes volatile energy and food prices, rose at a pace of 3.2% in August from a year prior. Inflation in housing (shelter) increased by 5.2% and food by 2.1% over the past 12 months. Real wages increased by just 0.9% for another month.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at IWF, issued the following statement:
“For another month, we are reminded by this inflation report that many households are straining under the weight of high prices and rising costs for food, energy, shelter, and utilities. Despite today’s data, overall prices are still up about 19%, while energy prices have risen rapidly since the start of 2021. Home heating oil is up 36%, electricity is up 32%, and natural gas is up 25%.
“Poor and working-class families spend disproportionately more of their incomes on essential items such as food and energy than higher-income households. Persistent inflation is forcing many Americans to make disheartening choices—choosing between paying utilities and buying food or medicine. Some 44% of households living near or below the federal poverty line struggle to meet basic household heating, cooling, and other energy needs. The inflation rate ticking down/up slightly does not improve their well-being.
“We cannot spin away the facts. Three-and-a-half years of the Biden-Harris economic and energy agenda has left American households in a more financially vulnerable position. Real wage declines have eroded Americans’ purchasing power. Real earnings were negative for 25 months of this administration. The average household has lost roughly $2,000 of purchasing power since January 2021. Personal savings since January 2021 have fallen by nearly $3 trillion. Collective credit card balances are at an all-time high of $1.1 trillion. We cannot afford another four years of the same failed policies of overregulation of energy and overspending in Washington that led to inflation’s meteoric rise.”
Today, Patrice Onwuka testified before the House Energy and Commerce Committee’s Subcommittee on Energy, Climate, and Grid Security on the economic repercussions of the Biden-Harris energy agenda. The hearing, titled, “From Gas to Groceries: Americans Pay the Price of the Biden-Harris Energy Agenda,” examines how the Biden-Harris administration’s energy agenda has hurt American households and businesses.