Americans do not need a government report to tell them they’re paying a lot more for groceries, gasoline, rent and utilities, thanks to inflationary pressures that on Thursday set a record — a 7.5 percent rise in consumer prices not seen for 40 years (The Hill).

An overall strong economy, but one with a scarcity of workers during a pandemic, may have pushed wages higher, but not enough for the middle class, Latinos and millennials to stay ahead of what analysts say shakes out to about $276 more a month in costs for the average U.S. household (CNBC). Most Americans did not receive 8 percent raises as 2022 began, which means they are falling behind, and they know it.

But recent studies point to Black women as the fastest-growing demographic of entrepreneurs in the country, with nearly 2.7 million nationwide (The Hill’s Changing America).

The New York Times: High inflation was anticipated in January’s consumer price index, but it was worse than expected.

The Wall Street Journal: From breakfast cereal to light bills, prices are up.

Whom do Americans blame for the price squeeze? The White House and Democrats who are preparing to face voters in November think President Biden and the party in power will be held to account (The Hill). Perhaps they already are: 58 percent of Americans say they disapprove of the job Biden is doing, according to a CNN poll released on Thursday. A large majority of those surveyed could not come up with a single idea when asked to name something they favored during Biden’s tenure (The Hill).

As the finger-pointing continues, Republicans and some Democrats insist part of the fault lies with what they believe was excessive federal stimulus approved by Congress in 2020 and 2021 to address the economic impact of COVID-19.

“I’ve been ringing the alarm bell forever… nobody’s been listening,” complained West Virginia Sen. Joe Manchin (D), who holds great sway in the 50-50 chamber. “It’s a 7.5 percent tax on everything you buy. It’s unbelievable!”

Manchin (pictured below) almost single-handedly put the brakes on Biden’s nearly $2 trillion proposed Build Back Better social spending and climate agenda last year. The centrist senator is convinced he was correct. “We’re not in a financial position to do it,” he told reporters. “We’ve got to get our financial house in order. … Now’s not the time to be throwing caution to the wind and putting more trillions of dollars out” (The Hill).

 

© AP/Jose Luis Magana

Nonetheless, the president on Thursday continued to champion his proposals, bypassing the misgivings of Manchin and others. During a stop in Culpeper, Va., Biden said the spending proposals already approved by the House would lower drug prices. “In my Build Back Better legislation…we can do that. … Now we just have to get it through the United States Senate, and we’re close,” he said (The Hill).

 

Reacting to the inflation report on Thursday with a written statement, the president basically changed the subject. He touted what he sees as favorable wage growth as well as some economists’ projections that inflation will be tamer by the end of the year. “While today’s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022,” Biden said (CNBC).

 

© AP/Alex Brandon

Also facing considerable blame is the nation’s central bank, which has been accused of being too slow to recognize the inflation warnings and is expected to begin raising interest rates in March. The January inflation data and expectations for higher interest rates sent stocks tumbling.

Analysts and Wall Street soothsayers warned Americans on Thursday that they may be tired of inflation, but they need to buckle up. The actions of the Federal Reserve will not and cannot provide relief for months (CNBC).

 

 

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