Biden’s Economy: Consumer Prices Rose 3.1% In January 2024

Under President Joe Biden, the U.S. economy has drastically struggled. Consumer prices recently rose an “unexpected” 3.1% in January 2024, exceeding expectations.

As consumer prices increased, so did inflation, which rose 3.9% compared to 2023.

PJ Media reported that the Federal Reserve Board has been “very timid” about slashing rates, thereby leading consumer prices to skyrocket. The outlet pointed out that in the past, the central bank has tried to tackle high prices by cutting rates, but such a decision would lead inflation to dramatically increase.

“They were right to be patient, because this is the kind of number that is going to cast doubt on whether there really is a lot of deceleration in store for inflation,” the founder of Inflation Insights, Omair Sharif, said. “This is definitely a spooky number.”

The chairman of the Federal Reserve, Jerome Powell, questioned whether the inflationary figure was legitimate or a mirage.

“Is it sending us a true signal that we are, in fact, on a path — a sustainable path — down to 2 percent inflation? Powell asked during a news conference on Jan. 31, 2024. “That’s the question.”

The Federal Reserve has picked the 2% figure as ideal for inflation.

CNBC noted that shelter prices, which comprise about 30% of Consumer Price Index (CPI) calculations, accounted for most of the consumer price increase.

Along with such an increase, food prices rose by 0.4% in January 2024. Gasoline prices fell by 3.3% in the same period.

The New York Times reported that rent prices have increased by 6% compared to 2023 and shelter inflation has risen on a “month-to-month basis.”

“Rents were up 6.1 percent from a year earlier, and some measures of shelter inflation actually accelerated on a month-to-month basis,” The newspaper wrote.

President Joe Biden has tried to sell the idea that inflation is old news, but the Federal Reserve’s report on consumer prices tells a different story.

Despite gasoline prices previously decreasing, the New York Times reported that “According to AAA, the average cost of a gallon of unleaded gasoline was $3.23 today, 8 cents higher than a week ago and 16 cents higher than last month.”