To start 2023, inflation increased as consumers paid more for gas, shelter, and fuel, the Labor Department reported.
CNBC reports, consumer prices rose 0.5% in January, which translated into a 6.4% increase for the year. Based on Dow Jones’ survey, economists expected 0.4% and 6.2% increases, respectively.
In the core CPI excluding volatile food and energy, monthly and yearly changes were 0.4% and 5.6%, respectively, compared with estimates of 0.3% and 5.5%.
Approximately half of the monthly increase was attributed to rising shelter costs, according to the Bureau of Labor Statistics. Over one third of the index is composed of this component, which rose 0.7% on the month and was up 7.9% from a year ago. In December, the CPI increased by 0.1%.
Similarly, energy costs rose by 2% and 8.7%, respectively, while food costs rose by 0.5% and 10.1%.
Real pay for workers decreased as prices rose. According to a separate BLS report that adjusts wages for inflation, average hourly earnings fell 0.2% for the month and 1.8% from a year ago.
By massively spending and shutting down industries like the energy sector, President Biden is destroying America and Americans’ savings.
Over the past two years, households have faced difficulties due to rising prices. A Gallup survey found that 50% of respondents are “financially worse off” than they were a year ago, and 35% are “financially better off.” These results are the most dismal since the 2008 and 2009 recessions.
It’s clear that the leadership coming out of the Biden administration is having an immense negative impact on the economy. In fact, January’s inflation data shows just how struggling Americans really are – with consumer prices rising 0.5% and average wages falling 0.2%. No matter where you live or what your income looks like, it’s undeniable that the current state of our country has us in a tight corner. The worst part is that President Biden is aggravating our situation further with excessive and reckless spending.