Crippling Cost of Living Continues: Gas Prices Rise to $5.014 a Gallon, Food Prices Rise 12%

Crippling Cost of Living Continues: Gas Prices Rise to $5.014 a Gallon, Food Prices Rise 12%

The average cost of a gallon of gasoline in the United States has risen to $5,014, with grocery costs seeing the biggest one-year increase since 1979.

Gas prices are up $1.94 from the same time last year, hitting 50 cents in the past month alone, according to the AAA Gas Price Index.

The national average exceeded the $5 for the first time in history over the weekend, and President Biden once again shifted the blame for the price spike to Russia.

Meanwhile, the cost of groceries rose 11.9% from the same time last year, the biggest increase the country has seen since Jimmy Carter was president.

The Labor Department report released on Friday showed the consumer price index jumped 1% in May from the previous month, for an 8.6% year-over-year increase, surpassing the recent peak seen in march.

New figures released on Friday suggested the Federal Reserve could continue its rapid interest rate hikes to combat so-called “bidenflation”, and markets reacted quickly, with the Dow Jones losing around 600 points.

Markets continued to decline in early trading on Monday as fears of a recession grew.

New data shows that annual inflation in the United States hit 8.6% last month.  The report led Biden to admit that inflation remains a problem in the United States

New data shows that annual inflation in the United States hit 8.6% last month. The report led Biden to admit that inflation remains a problem in the United States

President Joe Biden speaks to reporters outside Air Force One on Saturday.  He continued to blame Russia and its war in Ukraine for soaring gas prices in the United States

President Joe Biden speaks to reporters outside Air Force One on Saturday. He continued to blame Russia and its war in Ukraine for soaring gas prices in the United States

Runaway inflation rates are hurting American wallets outside the gas station, especially at the grocery store.

Grocery prices have risen at staggering rates and are expected to continue to climb as the crisis continues.

The price of eggs has risen 32% and that of poultry 16.6% since the start of the year, following an outbreak of bird flu in January that killed around 6% of commercial chickens.

The embargoes against Russia also caused the prices of grain-based foods to rise, while fats and oils increased by 16.9% and milk increased by 15.9%.

As inflation-linked production costs rise, growers and retailers have indicated they will be forced to keep raising prices.

On Monday, Kraft Heinz indicated it would raise prices for a number of products in August, according to the Wallstreet Journal, with sales chief Cory Onell saying recent inflation was directly responsible for the upcoming price increases. company.

And there’s no relief to be found in restaurants, with the Labor Department report showing restaurants raised prices 7.4% during the year.

Soaring food prices have led consumers to switch brands, stores and change their shopping habits.

The Beige Book report, compiled by 12 regional Federal Reserve banks, shows people are choosing to buy half gallons of milk instead of full ones, and are turning to store brands to save on costs .

According to figures from the Food Industry Trade Group, 35% of consumers are now buying private labels rather than name brands, and 21% are opting for less fresh seafood and meat to try to cut costs.

Speaking to reporters on Saturday, Biden said Russia’s war in Ukraine was behind the spike in oil and gas prices.

“It’s outrageous what the war in Ukraine is causing,” Biden said.

“We are working to ensure that we can significantly increase the amount of barrels of oil extracted from the reserve that we have,” he added.

Biden faces mounting political backlash as high prices increase pain for American families, who are seeing daily highs at the gas pump.

Overall, global oil prices are rising, aggravated by sanctions against Russia, a major oil producer, over its war on Ukraine.

Additionally, there are limits to refining capacity in the United States as some refineries have closed during the pandemic.

The combined result is to see the cost of stuffing rise, draining money from Americans who are facing the highest rate of inflation since 1981.

Surveys show Americans see high inflation as the country's biggest problem and most disapprove of Biden's handling of the economy

Surveys show Americans see high inflation as the country’s biggest problem and most disapprove of Biden’s handling of the economy

After the release of May figures from the Labor Department, President Biden finally admitted that inflation remained stubbornly high after months of deflecting the issue.

Biden has previously claimed inflation peaked as early as December and has tried to sound hopeful in recent months, but his reaction to the May figure took on a darker tone, while blaming Vladimir Putin and Republicans in Congress. .

“Today’s report underscores why I have made tackling inflation my top economic priority,” Biden said in a statement, conceding that it “is not declining as sharply and as quickly as we need to. to see him”.

Surveys show that Americans see high inflation as the country’s biggest problem and most disapprove of Biden’s handling of the economy.

Friday’s report highlighted fears that inflation could spread beyond energy and goods whose prices are being pushed up by obstructed supply chains and the invasion of Ukraine by the Russia.

If the Fed becomes more aggressive in fighting inflation with rate hikes, it will mean more expensive loans for families and businesses, and increase the risk of recession.

“Virtually every industry has above-normal inflation,” said Ethan Harris, head of global economic research at Bank of America.

“It has made its way into every nook and cranny of the economy. That’s what makes it worrying, because it means it’s likely to persist.

A leading British economist chastised the Federal Reserve Bank on Sunday, suggesting the current inflation could have been avoided had it not been for the naivety, or arrogance, of central bankers who dismissed the price hike as temporary.

“There was hope at the start that it would be transitory, that is to say temporary and quickly reversible,” Mohamed El-Erain, chief economic adviser at Allianz, told the nation on Sunday. “There was hope, as you pointed out, that he had peaked. I never shared those hopes. I think we have to be very modest about what we know about this inflation process. And I’m afraid it will get even worse, we could well get to 9% at this rate.

He said that “humility is totally necessary”.

“I was very puzzled a year ago when so many people were so convinced that inflation was transitory. There was so much we didn’t understand about post-COVID inflation, that humility would have been a good idea,’ he said.

YouTuber-turned-boxer Jake Paul blasted President Biden in a tweet, blaming him for high prices, inflation, high rents and falling crypto prices

YouTuber-turned-boxer Jake Paul blasted President Biden in a tweet, blaming him for high prices, inflation, high rents and falling crypto prices

Meanwhile, controversial YouTuber-turned-boxer Jake Paul has joined the chorus of Biden critics, taking to Twitter to air his grievances about the state of the economy.

Paul posted a direct message to Biden in which he listed the reasons the country was not doing well and where he was heading.

“Biden’s Accomplishments 1. Highest Gas Prices 2. Worst Inflation 3. Falling Crypto Prices 4. Highest Rent Prices Ever 5. Creating a New incomprehensible language,” he began.

Biden’s full statement on May inflation rate

“Today’s report highlights why I have made fighting inflation my economic priority. While it is good to see critical “core” inflation moderating, it is not coming down as sharply and as quickly as we should see. Putin’s price hike hit hard in May here and around the world: high pump prices for gasoline, energy and food accounted for about half of monthly price increases, and prices at the gas pump have gone up by $2 a gallon in many places since Russia. troops began to threaten Ukraine. While we continue our work to defend freedom in Ukraine, we need to do more — and quickly — to bring prices down here in the United States.

“My administration will continue to do everything in its power to bring down prices for the American people. Congress must also act urgently. I ask Congress to pass a bill to reduce shipping costs this month, and send it to my office, so that we can reduce the price of goods. And, I’m calling on Congress to pass legislation to reduce costs for families like energy bills and prescription drugs. The deficit has shrunk more under my leadership as president than at any time in history, but if Congress passes tax reform so that the wealthiest Americans and big business pay their fair share, we could further reduce this inflationary pressure. These are the most important things Congress can do to help families now and complement the Federal Reserve’s efforts to reduce inflation.

“Prices at the pump are a big part of inflation, and the war in Ukraine is a major cause of that. The United States is on track to produce a record amount of oil next year, and I’m working with industry to speed up that production. But it’s also important that the oil, gas and refining industries in this country don’t use the challenge created by the war in Ukraine as a reason to make things worse for families with excessive profit taking or price hikes. We all have work to do to reduce inflation. What won’t help is the plan of some Republicans in Congress to raise taxes on the middle class and working families would be a step in the wrong direction, and I strongly oppose it.

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