In May, the producer price index hit 10.8%, showing yet another terrible effect of the Biden administration’s failed policies.
Inflation in the PPI increased by over 1% in that one month. The PPI calculates the total marketed output of goods and services produced in the United States. Contrary to popular belief, it does not track wholesale price inflation.
In May, the consumer price index surpassed economists’ expectations, climbing to 8.6%. This was the highest level in 41 years.
The rise largely stemmed from essential goods: “the biggest contributors to the latest jump in inflation were shelter, gasoline, and food, according to the BLS.” Travel costs also continued to soar, even as COVID restrictions ease.
Politicians and the media continued to transfer responsibility for the United States’ soaring inflation. The Associated Press claimed last month that rising fuel and food prices were due to a lack of illegal immigrants. Biden has placed blame on his aides, Putin, and Corporate America.
However, Transportation Secretary Pete Buttigieg told ABC News that the White House’s inflation goal was to increase Americans’ reliance on the government. He also blamed Republicans for the rise in inflation.
Meanwhile, as the cost of living continues to break new records, Americans have been compelled to cut back. The majority of them blame Biden for rising prices.
As prices rise, an increasing number of economists are raising fears about a possible recession.
Even CNN is warning of a Biden-era recession. According to a piece written in April, Deutsche Bank predicted a mild recession for the US. However, it now warns that its predicted recession will be much worse than originally anticipated: “‘We will get a major recession,’ Deutsche Bank economists wrote in a report to clients.”
To combat inflation, the Federal Reserve is expected to raise interest rates, but this could result in increased credit card bills, mortgage rates, and home prices.