After a week of incredibly high inflation numbers, the Biden administration is urging Americans not to worry about the rising prices of goods and services.
The Department of Labor released data on the consumer price index and the producer price index, two major markers of inflation that showed the highest inflation in years.
“The all items index rose 6.2 percent for the 12 months ending October, the largest 12-month increase since the period ending November 1990,” the Bureau of Labor Statistics said. “The index for all items less food and energy rose 4.6 percent over the last 12 months, the largest 12-month increase since the period ending August 1991. The energy index rose 30.0 percent over the last 12 months, and the food index increased 5.3 percent.”
Despite the near-record levels of inflation, Treasury Secretary Janet Yellen said there is little to worry about.
“I expect that next year, many of the supply bottlenecks that we’re experiencing now in opening up our economy will recede,” Yellen told NPR. “Sometime during the second half of the year, we’ll see inflation rates moving back toward the 2% that we regard as normal.”
Others, though, aren’t so sure.
“By all accounts, the threat posed by record inflation to the American people is not ‘transitory’ and is instead getting worse,” said Sen. Joe Manchin, D-W.V. “From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day.”
Biden has pointed to his federal spending as a way to address inflation, but experts say debt spending will only raise inflation.
“Inflation is a huge tax increase on Americans and the predictable outcome of reckless government policies: massive spending bills, trillions of dollars created out of thin air by the Federal Reserve, and labor and supply shortages exacerbated by misguided interventionist schemes,” said Justin Amash.