EDITOR'S NOTE: The cost of so-called “Bidenflation” to each individual American is around $3,400 a year. That amounts to a 6% wage decrease for the average worker. What’s killing the average American household are energy prices, rising 41.6% year-over-year, and food prices, jumping over 10% in the same period. This morning’s Producer Price Index report bore no news to ease the inflationary fears as manufacturing prices jumped 11.3% from a year ago. Bear in mind that rising manufacturing costs will likely make their way into consumer prices in a short period of time, further increasing the rapid erosion of your income and wealth. This news is certain to make both the Federal Reserve and, of course, the Biden administration nervous, as it tarnishes their credibility in economic (that is, monetary and fiscal) leadership. The Fed is now even more likely to take over-aggressive steps to counter inflation, possibly overshooting its target (like how it overshot its inflation target a few years back) and sending the US economy cratering into a deep recessionary slump. Those who allocated a portion of their portfolios to gold and silver at the beginning of this crisis are likely to fare better than those who did not.
The average family in which both parents work has lost $6,800 in annual wages under President Biden, a Heritage Foundation expert told Fox Business.
The average U.S. worker has lost $3,400 in annual income as a result of skyrocketing inflation since President Biden took office nearly 18 months ago.
Overall, the Consumer Price Index, a key inflation measurement, surged 9.1% year-over-year in June, a more-than-expected increase that marked its highest level since November 1981, according to a Bureau of Labor Statistics report Wednesday. The decline amounts to a roughly $3,400 yearly income decrease for the average worker and a $6,800 reduction for families in which both parents work, E.J. Antoni, a research fellow at The Heritage Foundation, told FOX Business.
"There are plenty of families that that's more than their food budget a year," Antoni told Fox Business in an interview. "I can't emphasize enough how much this is really crushing consumers."
"It's truly crushing the middle class and then the White House spokesperson says these garbage lines like ‘the economy is in transition,’" he continued. "Transition in the same sense, I suppose, that an iceberg transitioned the Titanic into a submarine."
The report showed that energy prices, including gasoline and electricity, have skyrocketed 41.6% year-over-year while food prices have risen 10.4% over the last 12 months. The energy index increase was its largest jump since 1980.
Antoni also noted that core inflation, which measures the change in consumer price across all sectors except the volatile energy and food sectors, rose a whopping 5.9%.
"What we are seeing now is those [food and energy] costs are finally being passed on to other businesses and then, ultimately, to consumers," he told Fox Business. "That's why they're being borne out in the core prices."
Republican lawmakers, meanwhile, slammed Biden following the report Wednesday for the president's agenda, which they blamed for the high consumer prices.
The Consumer Price Index reached 9.1% in June, which was even higher than expected. Inflation has now reached the highest rate in 41 years. How much more must Americans suffer at the expense of President Biden’s reckless and dangerous policies? https://t.co/mZHlXqUdSl
— Patrick McHenry (@PatrickMcHenry) July 13, 2022
"One year ago this week President Biden’s reckless stimulus checks began flooding the economy, and we are seeing the result: Inflation is raging and getting worse, forcing massive paycuts for American families," House Ways and Means Committee Ranking Member Kevin Brady said in a statement Wednesday.
According to Antoni's calculation, inflation has effectively erased the money Americans received from federal stimulus checks during the pandemic. The federal government sent three stimulus payments — worth $1,200, $600 and $1,400 respectively — between March 2020 and March 2021.
"How much more must Americans suffer at the expense of President Biden’s reckless and dangerous policies?" House Financial Services Ranking Member Patrick McHenry tweeted.
Originally published on Fox Business.