President Joe Biden finally acknowledged that inflation is indeed a worrisome problem, a stark contrast to his comments in July when he dismissed rising costs as temporary and nothing to worry about.
“Everything from a gallon of gas to the loaf of bread costs more,” Biden said during an event promoting his infrastructure bill in Baltimore on Wednesday, Nov. 10.
“It’s worrisome, even though wages are going up,” he said, Breitbart reported.
In July, the annual inflation rate was 5.4% after hitting 5% in May and 5.4% in June. The annual inflation rate remained at 5.3% in August and 5.4% in September.
Biden and his administration have tried to minimize its impact in the hopes that it will go away, but current results show the opposite.
In October, the inflation rate hit 6.2%, up 0.9% from a month earlier, marking the highest inflation rate since November 1990.
It is not just the U.S. households that feel pressured by higher prices, but businesses are also put under pressure.
Data from the Federal Reserve Bank of Atlanta showed on Wednesday that U.S. businesses on average said their unit costs had risen 3.6%, the biggest increase in data going back a decade.
About 40% of companies said they expect both labor costs and non-label costs to exert significant upward pressure on prices. About 30% of companies expect sales and margin adjustments to put moderate upward pressure on prices.
Biden now faces dissent from his party as Sen. Joe Manchin (D-W.V.) has pointed out that the inflation Americans are experiencing is not temporary.
“By all accounts, the threat posed by record inflation to the American people is not ‘transitory’ and is instead of getting worse,” Manchin said in a statement. “From the grocery store to the gas pump, Americans know the inflation tax is real and D.C. can no longer ignore the economic pain Americans feel every day.”
According to Breitbart, Biden said on Wednesday that the surge in energy costs is one of the top drivers of inflation and that taming inflation “is a top priority for me.”
“I have directed my National Economic Council to pursue means to try to further reduce these costs and have asked the Federal Trade Commission to strike back at any market manipulation or price gouging in this sector,” Biden said. “Other price increases reflect the ongoing struggle to restore smooth operations in the economy in the restart.”