August 12, 2021
August 12, 2021
Key indicators continue to point to skyrocketing inflation. Today, the Department of Labor reported the producer price index, which measures what U.S. producers receive for goods and services, rose a record 7.8 percent in July, outpacing expectations. That followed yesterday’s news that the consumer price index jumped 5.4 percent last month, tying June for the highest 12-month rate since 2008.
Inflation is effectively a tax increase on every American, and these numbers have tangible, negative impacts on families’ finances.
Wall Street Journal Editorial Board: Real (after inflation) average hourly earnings have declined for seven consecutive months (overall 2%) and nine of the past 12 months. Contrast this to the year before the pandemic when wages rose broadly while inflation was in check. Real average hourly earnings increased 1.4% in the 12 months from August 2018 to July 2019 compared to a 1.3% decline over the last year.
Now, voters are expressing frustration with the liberal economic policies driving up inflation. In a recent poll, nearly 80 percent of voters blamed failing government policies for inflation and 86 percent said they were concerned about it. 70 percent said that rising grocery prices have caused “hardship” for their family, and two-thirds said the same about skyrocketing gas prices.
The pollster who conducted the survey called the results “striking.”
New York Post: “The degree to which lower-income households are feeling the squeeze on food and fuel is striking, if not surprising, and highlights the risk that inflation could push families on the brink over the financial edge,” said pollster Chris Anderson.
Bottom Line: Voters are being suffocated by higher costs and placing the blame squarely on the federal government as reckless spending continues to drive inflation to record highs.