Consumer Prices Continue to Rise, Reaching a Record High of 19.5% Since the Start of the Biden Administration

Consumer Price Index: A Closer Look

The Producer Price Index (PPI) has exceeded expectations for the fourth consecutive month. Analysts had predicted a Consumer Price Index (CPI) increase of 0.3-0.4% month on month (MoM), but the actual figure was slightly lower at +0.3% MoM. The year-on-year (YoY) headline CPI dropped to +3.4%, which was in line with expectations, down from the previous +3.5%.

Analysis of Core CPI and Services

Upon closer examination, it was observed that the growth in services slowed down slightly on a month-to-month basis. The Core CPI, which excludes volatile food and energy prices, rose by 0.3% MoM, as predicted. The YoY Core CPI also slowed down to +3.6%, as anticipated.

Impact of 'Bidenomics' on Consumer Prices

Interestingly, since the start of President Biden's term, consumer prices have not decreased in any month. July 2022 was the only month where prices remained unchanged. This trend has led to an overall price increase of more than 19.5% since the introduction of 'Bidenomics'. This is a stark contrast to the +8% increase during President Trump's tenure. Consequently, prices have reached an unprecedented high.

Annual Price Increase Comparison

The average annual price increase under the Biden administration is 5.5%, which is more than triple the 1.9% average annual rise during President Trump's tenure.

Further Developments Awaited...

What's your take on this?

It's evident that consumer prices have been on an upward trajectory since the start of the Biden administration. What are your thoughts on this trend? Do you think it's a temporary phenomenon or a long-term consequence of 'Bidenomics'? Feel free to share this article with your friends and engage in a thought-provoking discussion. Don't forget to sign up for the Daily Briefing, which is delivered to your inbox every day at 6pm.