(AmericanProsperity.com) – Hitting American wallets hard and exposing the failure of Biden’s economic policies, American consumers received more worrisome news as inflation surged to 3% in the past month.
See the tweet below.
The Consumer Price Index (CPI) jumped by 0.5%, far exceeding expectations and signaling a worsening cost-of-living crisis for hardworking Americans.
The latest inflation data revealed the harsh reality facing American families under the previous administration’s mismanagement.
With consumer prices rising at an alarming rate, the Federal Reserve’s goal of reducing inflation to 2% remains a distant dream.
The core CPI, which excludes volatile food and energy prices, increased by 0.4% monthly and 3.3% annually, further highlighting the widespread nature of this economic crisis.
Shelter costs, a significant contributor to overall inflation, rose by 0.4% for the month. This increase is particularly burdensome for American families already struggling to keep a roof over their heads.
The surge in housing costs is pushing more people into the rental market, where low vacancy rates are driving up prices and exacerbating the inflation problem.
JUST IN: US inflation remains a problem. Inflation ticked up to 3% (y/y) in January –> the highest since June. The monthly gain was 0.5% –> above expectations
Rent made up 30% of the increase. Gas and food also contributed.
"Core CPI" which excludes food and gas rose 3.3%.… pic.twitter.com/L4QqRGWSdO
— Heather Long (@byHeatherLong) February 12, 2025
Food prices also saw a considerable uptick, rising by 0.4%. The cost of eggs has skyrocketed due to avian flu outbreaks.
This increase in food prices is hitting low-income families particularly hard, forcing many to make difficult choices between putting food on the table and paying for other essentials.
Moreover, the energy sector saw a sharp 1.1% increase, with gasoline prices climbing by 1.8%. This rise in fuel costs will inevitably lead to higher prices across the board as transportation expenses increase for businesses.
In response to this alarming inflation data, the Federal Reserve has paused additional rate cuts, leaving American consumers to face prolonged higher borrowing costs.
Fed Chair Jerome Powell’s reluctance to act decisively is only adding to the economic uncertainty plaguing the nation.
As President Trump started his second term, he would face the challenge of reversing the inflationary trends set in motion by the previous administration.
His plans for new tariffs on steel and aluminum imports aim to protect American industries and jobs, but some analysts warn they could potentially contribute to further inflation by 2025.
The impact of this inflation surge is already being felt in the markets. U.S. stocks fell, and Treasury yields rose following the release of the inflation report.
The Dow Jones Industrial Average futures dropped over 400 points, reflecting growing concerns about the state of the economy under Biden’s legacy.
As American families continue to struggle with rising prices and eroding purchasing power, the economic policies of the past administration have failed.
The road to recovery will be challenging, but with President Trump at the helm, there is hope for a return to the prosperity and economic stability that defined his first term.
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