Old North News

Sen. Mitch McConnell (R-KY), the Senate Minority Leader, recently published a press release about the high inflation rate in America stating that Americans are paying 13.2% more now than when President Joe Biden took office.

With that, a majority of Americans now say they are concerned about the cost of living and worried about their financial future. North Carolina's consumer price index (CPI) was reported at an 8.9% annual rate, higher than the national average, according to the most recent data.

“Since President Biden took office, inflation has shot up a staggering 13.2%,” McConnell said in a release. “For the average American household, this translates to hundreds and hundreds of extra dollars every month… In my home state of Kentucky, for example, the Democrats’ inflation has forced proud, hardworking families to ask for help putting food on the table. In some cases for the first time in their lives… This is what it happens when Washington Democrats put their own priorities ahead of the people’s.”

The U.S. Bureau of Labor Statistics issued its latest Consumer Price Index (CPI) summary on Sept. 13. It reported that the rate of inflation over the last 12 months came in at 8.3%. It also found that in the last year, food costs have risen by 11.4%, energy costs have increased by 23.8%, gas prices have risen by 25.6% and the cost to purchase a new vehicle has increased by 10.1%.

In the South Region, which includes North Carolina, the data show inflation at 8.9%, meaning the consumer price index has increased 8.9% in August of this year compared to 2021. Food prices increased by 11.5% and energy prices rose 22.6% since last year in that region. 

The same day the CPI came out, Biden celebrated the passing of the Inflation Reduction Act with Congress members and White House staff on the South Lawn of the White House.

“Today offers proof that the soul of America is vibrant, the future of America is bright and the promise of America is real,” Biden said, according to a Politico report.

After months without easing, inflation is taking a toll on average Americans. A Gallup Poll found that 56% of Americans say “price increases are causing financial hardship.” That’s up from 49% in January and 45% last November.

The poll surveyed 1,500 Americans from Aug. 1-22. Three out of four (74%) said they are experiencing “severe or moderate hardship.” The poll found middle-income and upper-income households to be struggling more than last year. Republicans are more likely to mention the hardship than Democrats, notes Gallup.

A more recent Gallup Poll found that inflation and the economy are the top issues in the upcoming election.

According to CNN Business, 71% of workers say the cost of living is “outpacing their salary.” A Bank of America poll found that 62% of workers are worried about their finances, despite having a job. Lorna Stabbia, head of retirement and personal wealth solutions at Bank of America claimed inflation is one of the main reasons people are worried.

“Stubbornly high inflation is eroding paychecks and darkening the mood of consumers,” the report said. “Although gasoline prices have eased in recent months, prices for food, rent and utilities remain high.”

E.J. Antoni, a research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, found that Americans have lost $4,200 in annual income since Biden took office. Heritage claims this is mainly because of inflation and high interest rates.

"Simply put, working Americans are $4,200 poorer today than when Biden took office,” Antoni said in a release. “This financial catastrophe for American families is the direct result of a president and Congress addicted to spending our money, combined with a Federal Reserve compliantly enabling this addiction by printing more dollars. Washington recklessly spent trillions of dollars it did not have and paid for it with newly printed money, causing rampant inflation that has destroyed people’s purchasing power and jeopardized Americans’ financial futures.”

Smart Asset reports that some economists say inflation is tied to increased federal government spending. Inflation can also stem from federal interest rates, supply chain issues and monetary policy. In the last 100 years, inflation has averaged about 3% per year, but Smart Asset reports the Consumer Price Index started “surging” in 2021.

The Consumer Confidence Index (CCI) “provides an indication of future developments of households’ consumption and saving, based upon answers regarding their expected financial situation, their sentiment about the general economic situation, unemployment and capability of savings” according to the Organization for Economic Cooperation and Development. The Conference Board reports the CCI rose 4.4 points in September to reach 108. The CCI was at 113.8 when President Biden took office.