Biden admin's rosy inflation numbers obscure how Americans are being hit by rising prices

The consumer price index (CPI), a measure of inflation, rose just 0.1% overall in November, for a total of 3.1% for the year, but was dragged down by falling gas prices while other indicators continue to rise, putting pressure on American families. according to data from the Bureau of Labor Statistics (BLS).

Gasoline prices fell 6.0% in November after falling 5.0% in October, down 8.9% over the past 12 months, substantially depressing the inflation rate overall, but still up 36.6% since when President Joe Biden first took office in January 2021, seconds in the BLS. In contrast, other goods and services that Americans rely on have continued to experience sustained gains, after sky-high inflation peaked under Biden at 9.1% year-on-year in June 2022.

The cost of renting Americans' primary residences rose 0.5% in November, for a total of 6.9% for the year, according to the BLS. Similarly, the overall house price increased by 0.4%, and costs increased by 6.5% year-on-year.

According to the BLS, transportation services have maintained particularly high inflation, with prices rising 10.1% over the past 12 months and 1.1% in November. The cost of maintaining and repairing Americans' vehicles has increased by 8.5% year-over-year, while the price of motor vehicle insurance has increased by 19.2%.

Housing and transportation were the two largest household expenses for the average American in 2022, accounting for 33% and 17% of their total spending. seconds at The Motley Fool.

The price of all food was up a modest 0.2% for the month, for a total of 2.9% over the past 12 months, but eating out, meaning eating at restaurants and other restaurant establishments, rose by 0.4% during the month and by 5.3% during the year. , according to the BLS.

Charged costs for hospital services remain high, rising 6.3% for the year and 0.1% month over month, according to the BLS. The health sector was the most important to increase in jobs in November, adding 77,000 new positions, but that has been bolstered by more than $1 trillion in federal funding through health insurance subsidies in fiscal year 2023.

“Today's report demonstrates continued progress in reducing inflation and reducing costs for American families,” according to a statement from the White House. “Inflation has fallen, while unemployment has remained below 4% for the longest period in 50 years, meaning workers' wages and household wealth are higher now than before of the pandemic, adjusted for inflation. Prices for a variety of products have fallen over the past year, from cars and gallons of gas to televisions, toys and many appliances to eggs and milk.”

Despite the slowdown in headline inflation, overall prices are still up 17.2% since Biden took office in January 2021. seconds at the Federal Reserve Bank of St. Louis. During this same period of time, real wages have done declined 2.1%.

After rising prices and declining real wages, the average American's savings have he plummeted of the highest observed during the COVID-19 pandemic. In April 2020, Americans held an all-time high of nearly $6 trillion in savings, which fell to $1 trillion in May and further to $768.9 billion in October.

The Federal Reserve has it looked for to return inflation to its 2% target range by raising the federal funds rate to a range of 5.25% and 5.50%, the highest point in 22 years. Jerome Powell, chairman of the Fed, previously noted that he believes the year-on-year inflation rate will not return to 2% until 2025.

The White House did not immediately respond to a request for comment from the Daily Caller News Foundation.

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