In a concerning economic update, the Bureau of Labor Statistics revealed that the U.S. inflation rate increased to 3.2% for the year ending in July.
The jump comes after a consecutive year of declines, posing significant challenges for President Joe Biden and the Federal Reserve, both of whom have been actively trying to manage inflation.
Inflation for July saw a modest month-to-month increase of 0.2%, aligning with financial forecasts.
Translated over a year, these monthly increments would bring the inflation rate close to 2.4%, hovering just above the Federal Reserve’s target of 2%.
Digging deeper into the data, “core inflation,” which excludes the often fluctuating prices of food and energy, rose to an alarming 4.7% for the year.
The ramifications of rising inflation have been felt deeply by the American public over the past couple of years.
It has significantly eroded public support for President Biden and his fiscal plans.
The opposition, particularly Republicans, has pointed fingers at Biden’s extensive spending initiatives, like the pandemic relief bill, as primary contributors to the inflationary environment.
Consumers continue to grapple with the burden of rising costs.
Essential items like bread witnessed a 9.5% price jump over the past year, with fats and oils seeing a 6.3% hike.
Contrarily, certain energy items experienced a drop.
Notably, the price of regular unleaded gasoline plummeted nearly 20% year-on-year, and motor oil prices went down by 20.2%.
Persistent rate hikes have spilled over, causing mortgage rates to surge beyond 7%, the highest since November.
This is starkly different from the enticing sub-3% rates available during the pandemic’s pinnacle, making homeownership increasingly out of reach for many Americans.
Trump Campaign Counters ‘Bidenomics’ with Economic Comparisons
In response to the current economic state, the Trump campaign issued a pointed comparison between the economic performances of both administrations, highlighting what they’ve dubbed as the “Trump Boom vs. Bidenomics Bust.”
Here are the key contrasts they’ve noted:
- Family Incomes: Under President Trump, real family incomes saw an increase of over $6,000. Conversely, during Biden’s tenure, they’ve witnessed a decline by $7,400.
- Job Creation: The first 30 months of Trump’s presidency led to the creation of 4.9 million jobs, as opposed to Biden’s 2.1 million after accounting for workers returning post-pandemic. This results in a net difference of 2.8 million more jobs under Trump.
- Manufacturing Jobs: Manufacturing jobs specifically surged by 454,000 during Trump’s initial 30 months, compared to Biden’s 204,000, resulting in a 250,000 job difference.
- Inflation and Costs: Gas prices averaged $2.42 per gallon as Trump left office. Under Biden, they peaked at $4 and currently stand at $3.83. Moreover, inflation rates have risen dramatically under Biden, reaching 5.5% as opposed to Trump’s average of 1.9%. The Trump campaign underscored that this is a staggering 189% increase.
- Regulatory Costs: Trump’s administration reduced regulatory costs by almost $11,000 per household over four years. In contrast, the Biden administration has increased them by roughly $10,000 in just two years.
- Labor Force: 63.4% of Americans were part of the labor force before the pandemic, which has dropped to 62.6% under Biden. This translates to 1.9 million fewer Americans working, which the campaign attributes to Biden’s policies.
- Economic Approval: Trump had an economic approval rate of 63% before the pandemic, while Biden currently sits at 19%.
- Mortgage Rates: Mortgage rates were considerably lower under Trump, with a record low of 2.65%. Under Biden, they’ve surged to nearly 7%, making homeownership significantly more expensive.
- Credit Card Debt: During Trump’s term, credit card debt dropped by a record amount. However, under Biden, a new high of $1 trillion has been recorded, marking an increase of almost $200 billion from 2020 levels.
- Tax Reforms: Trump’s tax reforms, which the campaign claims resulted in significant income boosts for American families, are at risk. Biden’s proposition to hike taxes by $4.7 trillion combined with the expiration of Trump’s tax cuts would allegedly cost American households a staggering $120,000 by decade’s end.
