Inflation accelerates at lightning pace in new setback for Biden

“U.S. consumer prices raced ahead in November at the fastest pace in39 years, dealing a potential setback to President Joe Biden’s spending plans and giving Republicans more ammunition against Democrats heading into the election year.

Costs for key goods and services soared0.8 percent for the month and 6.8 percent for the year, the highest since 1982, the Labor Department reported Friday. Prices for everything from food to automobiles have been surging as blistering demand from cash-rich consumers in a growing economy overwhelms a supply chain plagued by a lack of available workers.”

“The cost increases, which are outpacing wage gains and turning Americans’ views on the economy sour, have sliced into Biden’s approval ratings and made the 2022 midterm elections even more challenging for Democrats. The hot reading on consumer prices, which followed a 6.2 percent jump in October, is also likely to fuel Republican criticism of Biden’s economic performance, which they have dubbed “Bidenflation.”

It could embolden conservative Democrats such as Sen. Joe Manchin of West Virginia to oppose the president’s $1.7 trillion Build Back Better package, which the party hopes will clear the Senate by Christmas. Biden will need every Democratic vote in the 50-50 Senate to pass the bill.”

““Fortunately, in the weeks since the data for [Friday’s] inflation report was collected, energy prices have dropped,” Biden said in a prepared statement. He added that the CPI report “does not reflect today’s reality, and it does not reflect the expected price decreases in the weeks and months ahead, such as in the auto market.”

At the White House press briefing on Thursday, National Economic Council Director Brian Deese echoed these points and said many top economic forecasters see inflation falling quickly next year and coming closer to the Fed’s target of slightly over 2 percent per year for by the end of 2022.”

https://www.politico.com/news/2021/12/10/consumer-prices-surge-biden-setback-524075

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