Inflation Rises More Than Expected In January After Biden Claimed Prices Are ‘Coming Down’

Between January 2022, and January 2023, the Consumer Price Index grew 6.4% Price According to A, household staples like food and shelter continue to be under pressure. Report Source: Bureau of Labor Statistics

The month-to-month increase of 0.5% exceeded analysts’ forecasts, while core inflation, which factors out the more volatile food and energy categories, rose 0.4%, also surpassing expectations. While energy prices rose 2.0%, food prices rose 0.5% and shelter prices rose 0.7%.

“The pace of disinflation has slowed, and if a 0.5% monthly increase in headline and 0.4% in core prices are what passes for progress, we have low expectations,” Greg McBride, Chief Financial Analyst at Bankrate, stated these words in comments to The Daily Wire.

One week after President Joe Biden’s last price level report, the latest comes in. That “inflation is coming down” In his second State of the Union speech. “Inflation has been a global problem because of the pandemic that disrupted supply chains and Putin’s war that disrupted energy and food supplies,” He stated. “But we’re better positioned than any country on Earth.”

Inflation readings of 6.4% and 6.5% in January 2023 were slightly lower than those recorded in December 2022. The main reason for the disinflation was the decline in energy prices which fell 4.5% over the month before. However, this trend is now reversing as prices for gasoline and utilities gas services increased 2.4% and 6.7%, respectively, in January 2023. After gasoline prices reached their peak, the fuel costs have risen. Höchstes Niveau Recorded last year.

Families trying to survive on a tight budget have felt the effects of rising food prices. The cost of food at home rose 11.3% in January 2022 to January 2023 while the price of food abroad increased 8.2%.

“The broad-based improvement needed to be seen in order to feel good about where inflation is headed is still lacking,” McBride continued. “The leading contributors continue to be categories that are staples of the household budget: food, shelter, electricity, natural gas, apparel, vehicle insurance, and household furnishing and operations.”

Inflation has in fact eroded household purchasing power, and some consumers have been forced to pay more. fund Their budgets are balanced between savings and debt. Gallup survey respondents surveyed approximately 50% Survey They are, they said. “financially worse off” Comparatively to one year ago 35% think they are “financially better off,” The poll’s most disappointing results since 2008/2009, when the economy crashed, were the ones that resulted in the worst-ever dismal results. Low-income households are more likely to say that they are financially less fortunate.

“Inflation has shredded household budgets over the past two years, and not just when it comes to one-off discretionary expenses or special occasions, but for keeping up with day-to-day bills,” McBride was also added. “Until inflation returns to the 2% neighborhood, pressure on household finances will continue.”

Federal Reserve officials have increased the target federal funds rate to combat inflationary pressures. Officials raised Rates increased by 0.2% earlier in the month, after four new features were introduced Consecutive In the second half of 2013, there were two rate increases: 0.75% and 0.5%. McBride stated that central bankers will likely increase interest rates by 0.2% at their next meeting, but more inflation and unemployment data will be available before they make their decision.