Inflation Stays High in August Despite Falling Gas Prices

The federal government is reporting that inflation, which approached double digits earlier this summer and remained at a painful 8.5% in July, dropped by only a fraction of a point, to 8.3%, in August.

The result showed the Federal Reserve’s massive interest rate hikes, which hurt lower- and middle-income Americans most, have largely failed.

Likewise, the Democrats’ “Inflation Reduction Act,” which even they admitted has nothing to do with inflation but everything to do with spending hundreds of billions of dollars on “climate change” agenda points, has had little effect.

The Washington Examiner pointed out that, “The soaring inflation has eaten into President Joe Biden’s approval ratings as he and Democrats approach the midterm elections.”

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The report said the “so-called core CPI, which strips out volatile food and energy prices, increased by 0.6% in August, more than expected and more than the previous month. The figure shows that inflation is still a huge concern for the Fed and households.”

Gasoline and food prices have exploded in recent months, taking another shot at lower- and middle-income Americans.

“The energy index fell 5% on the month but is still up a sky-high 23.8% for the 12 months ending in August. Food prices increased more than 11% during that same period, according to the report,” the Examiner said.

Victor Claar, an economics professor at Florida Gulf Coast University, told the publication that the numbers shattered “expectations of ongoing inflation moderation.”

“Core inflation was the largest surprise today. … While gas prices have been falling, they’re not falling fast enough to overcome other price inflation in most consumer spending categories. Working families aren’t seeing any relief yet.”

The report noted, “There are fears that the Fed’s aggressive rate-hiking will result in the U.S. tumbling into a recession,” but actually, the common definition of recession is two consecutive quarters of a falling economy.

The report explained, “GDP fell at a 0.6% annualized rate in the second quarter, according to a revised estimate by the Bureau of Economic Analysis. The numbers come after negative 1.6% GDP growth in the first quarter.”

It was Democratic Rep. Elaine Luria of Virginia who confessed that her party’s “Inflation Reduction Act” was an environmental bill.

“The Inflation Reduction Act — that might be the name, but it’s a huge environmental bill that includes a lot of things, such as the tax credits necessary to make this kind of development Democratic Rep. Elaine Luria of Virginia,” Luria said while at an Aug. 24 event with the BlueGreen Alliance.

“It was great being with local labor, environmental, and community leaders today in Chesapeake to highlight the investments being made in the offshore wind industry and workforce in Coastal Virginia,” Luria posted on Twitter.

President Joe Biden signed the Inflation Reduction Act into law on Aug. 16. The legislation is loaded with green energy provisions, including a $7,500 tax credit for electric vehicles, and expanded the Environmental Protection Agency’s control over the energy industry in response to a Supreme Court ruling.

Inflation is just one of the crises America is facing under Joe Biden’s leadership. Others include a disaster at the southern border where millions of illegal aliens are entering the country, his catastrophic pullout from Afghanistan, leaving the nation open to al-Qaida’s resurgence, rampant attacks by the government on conservatives and pro-life action groups, and more. He lately has taken to characterizing Republicans and conservatives as “semi-fascist.”

 

 

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