Inflation continued to surge in July, the feds said Wednesday and remains the same as June.
The Labor Department’s Consumer Price Index, which measures a basket of goods and services as well as energy and food costs, jumped 5.4 percent in July from a year earlier.
That’s the same as June’s 5.4 percent, a percentage we saw in 2008. It came just before the financial crisis sent the U.S. into the worst recession it had seen since the Great Depression.
Consumer prices rose 0.5 percent from the month prior, the Labor Department said.
The core consumer price index, which excludes volatile food and energy costs, rose 4.3 percent from a year ago, slightly lower than the 4.5 percent that we saw in June which was the worst since 1991.
Inflation is the decline of purchasing power of a given currency over time. This can be visibly seen in the increase of an average price level of a basket of selected goods and services in an economy over some period of time.
The rise in the general level of prices, often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods.
It’s like a tax. So when the new trillion dollar spending bills force corporations to raise prices of all goods, including energy, inflation will rise and Americans will have less money to spend without wages going up.
Inflation is already crushing working-class Americans.
If the Democrats pass their $3.5 trillion reckless tax and spend plan, this will get much worse. https://t.co/a4PJFTb5W2
— Tom Cotton (@TomCottonAR) August 11, 2021