Written by Amanda Angulo
In just under the six months that Biden has been President, he has managed to do what once took Jimmy Carter four years to do: impose a rising tax on our purchases. We have all noticed the increase in gas prices as an effect of what Biden’s Administration is doing, but there has also been an increase in the cost of energy, water, food, lumber, and other consumer goods. Biden could be leading the country into the next great recession, just as he helped do when he was Obama’s Vice President.
In May, the US consumer prices have increased at their fastest annual rate in about 13 years due to the economy trying to make a comeback from this past year’s pandemic and lockdown.
On Thursday, the Labor Department stated that the consumer price index rose 5% for the past years which is more than the expected 4.7% increase. In addition, prices have been increased by 0.6% every month, which is also much quicker than the anticipated 0.4% increase, according to Refinitiv.
Used car and truck prices rose 7.3%. Food prices are rising 0.4%, just as it did in April. Core CPI, consumer price index, rose 3.8% in May with the exception of food and energy, which has been the most since June 1992, nearly two decades ago.
This is all due to the consequences caused by the COVID-19 pandemic. Businesses are struggling to reopen due to lack of supply and also lack of workers. Due to unemployment benefits resulting in much higher pay than what one would normally receive from work, it has encouraged the unemployed to remain so.
