President Joe Biden claims the latest inflation rate is "good" news. Of course not. Another economic report makes them even grimer.
Prices are still 8.5% higher than last year, the steepest rise in his 40 years, and could rise further, barring a modest drop in energy costs. there is. In addition, productivity fell again in the second quarter, the worst year-on-year drop of 2.5%.
But on Wednesday Biden boasted July inflation as ``0%''. Gasoline prices fell 7.7%, but food prices rose again, continuing a multi-month trend in which the 12-month rate of increase reached his 10.9%, according to Jimmy Carter in 1979. It was the fastest rise since the days of stagflation.
And the drop in gas pump prices is due todrivers traveling less rather than increased supply. Demand has dropped to 8.5 million barrels per day, matching his July 2020 levels when the pandemic kept millions indoors.
Of course, eating less is harder.
And, according to the Energy Information Administration, today's gas price is $4.15 a gallon, which may be better than June's $5.11, but that's simply because when Biden takes office. means that Americans are only paying 69% more than they are, not more than 108%.
Even more troubling is the plummeting productivity, which fell 4.6% in the last quarter after dropping a whopping 7.4% in his first three months of the year. . This marked the biggest year-on-year decline in hourly production since the Department of Labor began keeping records in 1948. As workers' wages rose at the same time, his unit labor cost rose by 10.8%.
That means workers are getting paid more and putting out less. Let's do our best to keep inflation down. If productivity does not improve, firms will have to raise prices to pay higher wages. Whatever
Biden & Co. says, it's a tough situation. And much of the blame lay with him and his fellow Democrats, who fueled demand with unnecessary spending, waged war on gas supplies, and generally blamed producers for new regulations.30} Biden can pretend the story is somehow changing, but the reality will not — until his policies change.