US Inflation Rate Jumps Highest in 40 Years to 7%, Democrats Concerned Inflation Will Haunt the Party – Economics Bitcoin News

One of the hottest topics in the US in 2022 is rising inflation, with US Department of Labor data published on Wednesday indicating that the Consumer Price Index (CPI) rose to 7% in December. This represents the largest annual jump since 1982. Federal Reserve Governor Lyle Brainard is scheduled to tell congressional leaders today that the central bank is focused on fighting inflation. Moreover, members of the Democratic Party are concerned that rising inflation could cost the Biden administration politically.

CPI rate rises to 7% and wholesale prices rise 9.7%

On January 11, 2022, the US Department of Labor published CPI data for December and the metrics indicate that the US inflation rate jumped 7% year-on-year, and last month was the third consecutive month above 6%. The rise is the highest jump in the CPI since June 1982 as inflation pushed up the prices of goods and services dramatically. Basically, the CPI is a measure of the basket of consumer goods and services that urban consumers pay on a regular basis.

US inflation jumps to 40-year high to 7%, Democrats worried inflation will haunt the party

After the Ministry of Labor published the statistical estimate, the CPI jump made headlines and ignited a spark number of discussions About inflation on social media and forums. To make matters worse, US producer price inflation, or wholesale prices, jumped 9.7% in December from a year ago, the highest year-over-year rate to date. Inflation levels have made a number of US officials increasingly concerned about the lack of purchasing power that Americans are dealing with today.

Fed governors to address inflation concerns, state governors take action

On Thursday, Federal Reserve Governor Lyle Brainard plans to discuss the central bank’s focus on the issue of inflation in prepared testimony before the US Congress. Brainard issued a statement on Wednesday, saying that “Federal Reserve policy is focused on bringing inflation back to 2% while maintaining an all-inclusive recovery.” The day before, Florida Governor Ron DeSantis said he had proposed a bill to help Florida families avoid the burdens of inflation. DeSantis chirp:

To help ease the burden of inflation on Florida families, I’m proposing a $1 billion gas tax exemption to help bring prices down at the pump. If Washington, D.C. does not change course, then we have a responsibility to escalate on behalf of the people of Florida.

Newspaper headlines show Biden, Democrats could pay ‘political price’ for inflation – Biden administration dismisses concerns

Meanwhile, there are several headlines on Thursday that say “Democrats worry Biden may pay the political price for high inflation”.

US inflation jumps to 40-year high to 7%, Democrats worried inflation will haunt the party

“Inflation fears can cause problems for Democrats,” says a CNN analysis written by Maeve Reston and Stephen Collinson. However, Jared Bernstein, Biden’s economic advisor, dismissed the concerns when discussing the topic with CNN’s Jim Sioto.

“It’s really important to be under the hood of these monthly inflation reports,” Bernstein told Sciutto. And if you look at the change from November to December, inflation is up half a percent. This is down significantly from October and November, when inflation rose, 0.8 and 0.9%, respectively. US President Biden repeated the same comment and said:

Today’s inflation figures show a significant decrease in headline inflation [the] Last month. We are making progress in slowing the rate of price increases. But there is still more work to be done – I remain focused on cutting costs for families and maintaining strong economic growth.

US officials mocked on social media, economist Peter Schiff says rates are much worse than ‘government-cooked CPI’

Politicians and the US central bank have been ridiculed on social media for rising inflation. Square and Twitter founder Jack Dorsey He said “Damn, Santa didn’t take the temporary inflation away.” Jokes Sven Henrich of Northman Trader chirp: “SPX is turning red as the inflation party runs out of free drinks.”

US inflation jumps to 40-year high to 7%, Democrats worried inflation will haunt the party

Gold expert and economist Peter Schiff discussed the topic of inflation in a blog post titled “Inflation Freight Train”. The American Chef’s Blog states that the CPI equation is inaccurate and inflation is likely to be much higher.

“Keep in mind that this uses the government’s cooked-up CPI equation that reduces inflation,” Schiff claims in an editorial. If the government still uses the formula it used in 1982, inflation will be higher in 2021 than it was then. In fact, we will have the highest inflation level in history. According to Shadowstats, it will be just over 15%,” the blog post adds.

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What do you think of the rise in inflation in the United States and criticism of the country’s political leaders? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for News about the disruptive protocols emerging today.

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