Wholesale prices soared 8.3% in August from a year ago, the biggest annual gain since the Labor Department began tracking the inflation data in 2010, The Washington Times reports. It looks like trouble for Bidenomics, President Biden’s big-spending, no-growth agenda.
The Labor Department reported Friday that its producer price index — which measures inflationary pressures before they reach consumers — rose 0.7% last month from July after increasing 1% in both June and July.
Wholesale food prices rose 2.9% in August and have climbed 12.7% in the past year. The price of beef has risen 59.2%.
Energy prices have risen 32.3% in the past year. In the past year, gas prices are up an incredible 99% although that takes in the pandemic effects. Pork is up 34.1%, Chicken 32%, Fish 18%, Turkey 41.4%, and Fresh Eggs 31.7%. Shortening and cooking oils are up a jaw dropping 43.5%. Dairy prices, fresh fruits, and vegetables are down but canned fruits and vegetable prices are up.
Republicans in Congress have been pointing to inflation as resulting from Biden’s push for two big-spending packages totaling far more than $4.5 trillion, cost to be revealed down the road.
The government will issue its monthly report on consumer prices on Tuesday. In July, consumer prices rose at an annual rate of 5.4%.
“Consumer prices are increasing at record levels – yet Democrats are trying to push through another $3.5 Trillion in spending,” tweeted Rep. Michelle Steel, California Republican. “American families will continue to pay the price as long as Democrats’ reckless tax and spending spree continues.”
With signs of inflation persisting, optimism among small business owners has plummeted as Democrats race to raise taxes, according to a new poll by a right-leaning advocacy group.
The poll conducted for the Job Creators Network found that an index measuring optimism among small businesses declined to 59.4 in August, down from 63.5 in July. It was the lowest point in the four months that Republican pollsters John McLaughlin and Scott Rasmussen have been conducting the survey.
Blame Shifting
Don’t expect it to get better. Biden is trying to shift the blame to four meatpacking companies his administration claims are causing sticker shock at grocery stores.
As part of a set of initiatives, the administration will funnel $1.4 billion in COVID-19 pandemic stimulus money to small meat producers and workers, administration aides said in a blog post. They also promised action to “crackdown on illegal price-fixing.”
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It’s Biden’s wild tax and spending policies causing the problem. Not recognizing the problem means he will throw money at some who are hurting, but not stop the spending policies hurting the economy.
Dr. John Lott Explains the Debt:
As an economist, I can’t help but comment on the exploding debt our country is facing. Exactly a year ago, the Congressional Budget Office estimated that we wouldn’t hit $29 trillion in debt until 2028, but we are now within a couple of weeks of hitting it, seven years early.
With estimates that we will hit debt of $40 trillion in a couple of years and $50 trillion by 2030, people need to understand what happens as interest rates increase.
We are at historically low-interest rates, and if the debt is $40 trillion, each one percentage point increase in the interest rate means increased interest payments of $400 billion per year. The CBO estimates the interest rate will remain below 2 percent until 2027. Good luck with that.
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