Inflation continues to soar throughout the U.S., with the Personal Consumption Expenditures (PCE) price index increasing to the highest level in almost 42 years while consumer spending cools, the Bureau of Economic Analysis (BEA) reported Thursday.
The PCE, one of the Federal Reserves’ key inflation indicators when it aims for a 2% annual inflation rate, surged 5.7% in November on a year-over-year basis, a 0.6% jump from October, the BEA reported. November’s figure is the highest since 1982.
Americans are tapped out. They are struggling to pay for higher prices at the pump, the grocery store, and just about everywhere else. Friday’s Bureau of Labor Statistics August Producer Price Indexes report showed on an unadjusted basis, the final demand index rose 8.3 percent for the 12 months ended in August, the largest advance since 12-month data were first calculated in November 2010.
The Producer Price Index is a precursor to what retail prices will be doing in months ahead, and the August report is more bad news. The 8.3 percent annual increase in final demand signals that Americans will be paying much more for goods and services in coming months and verifies what everyone who pays their own bills already knows, Joe Biden’s America is a much more expensive place to live and it is going to get worse.
It is time for Congress to just put a stop to the madness and refuse to pass the budget reconciliation bill. Our nation cannot afford to hit the accelerator when we are already feeling the inflation pain from our prior debt excesses.
A key index used by the Federal Reserve to measure inflation showed that consumer prices leapt quicker over the last 12 months than they have in three decades.
The personal consumption expenditures (PCE) index surged 3.9% in the 12-month period between June 2020 and May, according to the Department of Commerce report released Friday. The PCE index excluding volatile food and energy prices increased 3.4%, the biggest leap since the 1990s, CNBC reported.
Energy prices increased 27.4% while food prices increased 0.4% over the last 12 months, the report showed.