Generational High Inflation: Kill The Bill

Sen. Joe Manchin (D-WV): ‘The Threat Posed By Record Inflation To The American People Is Not “Transitory” And Is Instead Getting Worse… DC Can No Longer Ignore The Economic Pain Americans Feel Every Day’

SEN. JOE MANCHIN (D-WV): “By all accounts, the threat posed by record inflation to the American people is not ‘transitory’ and is instead getting worse. From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day.” (Sen. Manchin, @Sen_JoeManchin, Twitter, 11/10/2021)

Sen. Manchin: ‘[I Will Not] Support A Package That Risks Hurting American Families Suffering From Historic Inflation… I, For One, Also Won’t Support A Multitrillion-Dollar Bill Without Greater Clarity About Why Congress Chooses To Ignore The Serious Effects Inflation’

SEN. MANCHIN: “Nor will I support a package that risks hurting American families suffering from historic inflation. … I, for one, also won’t support a multitrillion-dollar bill without greater clarity about why Congress chooses to ignore the serious effects inflation and debt have on our economy and existing government programs. … Meanwhile, elected leaders continue to ignore exploding inflation, that our national debt continues to grow, and interest payments on the debt will start to rapidly increase when the FED has to start raising interest rates to try to slow down runaway inflation.” (Sen. Manchin, Press Conference, 11/01/2021)

Sen. Coons Recounted Manchin Saying Democrats’ Taxing-And-Spending Spree ‘Will Contribute To Inflation’

 “[Sen. Chris Coons (D-DE)] said Manchin continued, ‘[Build Back Better] will contribute to inflation. We've already passed the American Rescue Plan. We should just pass the infrastructure bill and, you know, pause for six months.’” (“Scoop: “How About Zero?” Manchin, Sanders Get Heated Behind Closed Doors,” Axios, 10/21/2021)

Rampant Inflation Is Breaking Records Going Back Decades

 Consumer Price Index Increased 6.2 Percent Year-On-Year, ‘The Fastest Annual Pace Since 1990’

 “U.S. inflation hit a three-decade high in October—rising at a 6.2% annual rate—as pandemic-related supply shortages and continued strength in consumer demand continued to push up prices. The Labor Department said the consumer-price index, which measures what consumers pay for goods and services, increased at the fastest annual pace since 1990. Inflation also topped 5% for the fifth straight month. The so-called core price index, which excludes the often-volatile categories of food and energy, in October climbed 4.6% from a year earlier, higher than September’s 4% rise and the largest increase since 1991. On a monthly basis, the CPI increased a seasonally adjusted 0.9% in October from the prior month, a sharp acceleration from September’s 0.4% rise, and the same as June’s 0.9% pace.” (“U.S. Inflation Reached 30-Year High in October,” The Wall Street Journal, 11/10/2021)

Producer Price Index Rose 8.6 Percent Year-On-Year, ‘Their Highest Annual Pace In Records Going Back Nearly 11 Years’

“Wholesale prices rose 8.6% from a year ago in October, their highest annual pace in records going back nearly 11 years, the Labor Department said Tuesday. The government’s producer price index, which serves as a gauge of final demand prices from goods producers, rose 0.6% for the month, in line with Dow Jones estimates and an indicator that inflation pressures are continuing to burden the U.S. economy. The monthly pace was faster than the 0.5% increase in September.” (“Wholesale Prices Rose 8.6% Year Over Year In October, Tied For Highest Ever,” CNBC, 11/09/2021)

Over The Past Year, Prices For Everyday Goods And Services Have Skyrocketed

“The result has been accelerating prices for a broad range of consumer goods, from food, heating oil and patio furniture to paints, chemicals and window blinds. After initially affecting mainly goods in pandemic-disrupted industries, surging inflation has broadened into the many services that Americans spend money on, notably for restaurant meals, rental apartments and medical services, which jumped 0.5% in October.” (“US Consumer Prices Soared 6.2% In Past Year, Most Since 1990,” The Associated Press, 11/10/2021)

The price of all items less food and energy increased 4.6 percent year-on-year, the largest increase since 1991. (Bureau of Labor Statistics, Accessed 11/10/2021)

Food prices increased 5.3 percent year-on-year, the largest increase since 2009. (Bureau of Labor Statistics, Accessed 11/10/2021)

Prices for food away from home increased 5.3 percent year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 11/10/2021)

Energy prices increased 30 percent year-on-year, the largest increase since 2005. (Bureau of Labor Statistics, Accessed 11/10/2021)

Prices for fuel oil and other fuels increased 48.3 percent year-on-year, the largest increase since 2008. (Bureau of Labor Statistics, Accessed 11/10/2021)

Electricity prices increased 6.5 percent year-on-year, the largest increase since 2009. (Bureau of Labor Statistics, Accessed 11/10/2021)

Housing prices increased 4.5 percent year-on-year, the largest increase since 2001. (Bureau of Labor Statistics, Accessed 11/10/2021)

Prices for lodging away from home increased 22.3 percent year-on-year, the largest increase ever. (Bureau of Labor Statistics, Accessed 11/10/2021)

Prices for household furnishings and supplies increased 6.1 percent year-on-year, the largest increase ever. (Bureau of Labor Statistics, Accessed 11/10/2021)

Prices for new cars and trucks increased 9.9 percent year-on-year, the largest increase ever. (Bureau of Labor Statistics, Accessed 11/10/2021)

Prices for pets and pet products increased 3.7 percent year-on-year, the largest increase since 2009. (Bureau of Labor Statistics, Accessed 11/10/2021)

As Inflation Rises, Americans’ Paychecks Are Getting Smaller With Year-On-Year Real Average Weekly Earnings Decreasing 1.6 Percent

“Real average weekly earnings decreased 0.9 percent over the month due to the change in real average hourly earnings combined with a decrease of 0.3 percent in the average workweek. Real average hourly earnings decreased 1.2 percent, seasonally adjusted, from October 2020 to October 2021. The change in real average hourly earnings combined with a decrease of 0.3 percent in the average workweek resulted in a 1.6-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, 11/10/2021)

“Inflation is eroding the strong gains in wages and salaries that have flowed to America’s workers in recent months, creating political headaches for the Biden administration and congressional Democrats and intensifying pressure on the Federal Reserve as it considers how fast to withdraw its efforts to boost the economy.” (“US Consumer Prices Soared 6.2% In Past Year, Most Since 1990,” The Associated Press, 11/10/2021)

• “America’s employers, facing labor shortages, have also been handing out sizable pay increases, and many of them have raised prices to offset their higher labor costs, thereby contributing to inflation.” (“US Consumer Prices Soared 6.2% In Past Year, Most Since 1990,” The Associated Press, 11/10/2021)

“Some economists are also concerned that while wages are climbing, they aren’t growing enough to compensate for inflation and the rising cost of living, at least in the short term. And many of the daily items that some households must budget for, keep getting more expensive. Bacon is up 20 percent compared to last year. Eggs are up nearly 12 percent, and chicken up is up almost 9 percent. Rent is also creeping up, with costs rising 0.4 percent in October compared to September…. [T]he rise in household goods is eroding wage gains each month. Households feeling the strain now could increasingly begin to believe that inflation will stick around longer and change their spending behavior, which could make inflation a self-perpetuating cycle, lasting longer.” (“Prices Climbed 6.2 Percent In October Compared To Last Year, The Largest Increase In 30 Years, As Inflation Strains Economy,” The Washington Post, 11/10/2021)

‘This Season, Heating Costs Could Rise To Levels Not Seen For A Decade, Even If There Isn’t A Severe Winter… The Pain Will Be Particularly Acute For Those Of Limited Means’

“Energy costs soared 4.8% just from September to October, with gasoline, natural gas and heating oil surging for the same reason that many other commodities have grown more expensive: Demand has risen sharply as Americans are driving and flying more, but supplies haven’t kept up. In the past year, energy costs have jumped a whopping 30%, with gasoline soaring nearly 50%. Natural gas prices are also soaring, and so is heating oil. The Energy Information Administration forecasts that these increases will bite hard this winter, with Americans expected to spend 30% more on natural gas and 43% more on heating oil.” (“US Consumer Prices Soared 6.2% In Past Year, Most Since 1990,” The Associated Press, 11/10/2021)

“With consumers already dealing with the fastest price increases in decades, another unwelcome uptick is on the horizon: a widely expected increase in winter heating bills. After plunging during the pandemic as the global economy slowed, energy prices have roared upward. Natural gas, used to heat almost half of U.S. households, has almost doubled in price since this time last year. The price of crude oil — which deeply affects the 10 percent of households that rely on heating oil and propane during the winter — has soared by similarly eye-popping levels. And those costs are being quickly passed through to consumers, who have become accustomed to cheaper energy prices in recent years and now find themselves with growing concerns about inflation this year.” (“Winter Heating Bills Loom As The Next Inflation Threat,” The New York Times, 11/08/2021)

• “In the United States, the winter months account for about 50 to 80 percent of residential fuel consumption. And there is ‘a significant chance’ consumers could face a ‘marked increase’ in prices for heating, said Nina Fahy, an analyst for Energy Aspects, a research consultancy. … This season, heating costs could rise to levels not seen for a decade, even if there isn’t a severe winter. Several factors — lower global fuel inventories, incentives for producers to let prices rise and a mismatch between supply and demand as economies emerge from the pandemic — may combine to push bills higher regardless.” (“Winter Heating Bills Loom As The Next Inflation Threat,” The New York Times, 11/08/2021)

• “As with other price shocks stemming from the pandemic, the pain will be particularly acute for those of limited means. Twenty-nine percent of those surveyed by the Census Bureau have reported reducing or forgoing household expenses to pay an energy bill in the last year.” (“Winter Heating Bills Loom As The Next Inflation Threat,” The New York Times, 11/08/2021)

10 Bipartisan New England Senators Wrote President Biden Urging Action On The High Cost Of Heating Prices

10 BIPARTISAN NEW ENGLAND SENATORS: “We write today to urge federal action to address the heating needs of our country’s households as we approach and enter the upcoming winter season… Given the current state of energy markets and the lingering economic effects of the COVID-19 pandemic – and in preparation for the cold weather season in New England – we urge your administration to consider and prepare to take targeted actions. … These predicted costs will have a very real effect on the ability of many New England families to keep their homes at a safe temperature this winter… No family should have to make the decision between paying their bill to keep their children warm, putting food on the table, and keeping the lights on.” (Sen. Collins et al, Letter to President Biden, 10/28/2021)

‘This Year’s Thanksgiving Feast Will Wallop The Wallet’

“Thanksgiving 2021 is shaping up to be the most expensive meal in the history of the holiday…. Nearly every component of the traditional American Thanksgiving dinner, from the disposable aluminum turkey roasting pan to the coffee and pie, will cost more this year, according to agricultural economists, farmers and grocery executives. Major food companies like Nestlé and Procter & Gamble have already warned consumers to brace for more price increases. There is no single culprit. The nation’s food supply has been battered by a knotted supply chain, high transportation expenses, labor shortages, trade policies and bad weather. Inflation is at play, too. In September, the Consumer Price Index for food was up 4.6 percent from a year ago. Prices for meat, poultry, fish and eggs jumped drastically, by 10.5 percent.” (“This Year’s Thanksgiving Feast Will Wallop The Wallet,” The New York Times, 10/25/2021)

• “For many cooks, the biggest expense will be the turkey. By the end of the year, market analysts say, prices per pound will likely surpass the record Department of Agriculture benchmark price for turkeys — $1.36, set in 2015. Turkey is more expensive largely because the price of corn, which most commercial turkeys feed on, more than doubled in some parts of the country from July 2020 to July 2021. Whole frozen birds between eight and 16 pounds already cost 25 cents a pound more than they did a year ago, according to the weekly Department of Agriculture turkey report released on Friday.” (“This Year’s Thanksgiving Feast Will Wallop The Wallet,” The New York Times, 10/25/2021)

• “Packaged dinner rolls will be pricier because the cost of almost all of the ingredients that commercial bakers use has gone up. Canned cranberry sauce will cost more because domestic steel plants have yet to catch up after pandemic shutdowns, and China is limiting steel production to reduce carbon emissions. As a result, steel prices have remained more than 200 percent higher than they were before the pandemic.” (“This Year’s Thanksgiving Feast Will Wallop The Wallet,” The New York Times, 10/25/2021)

• “The heftier price tag on that turkey-friendly California pinot noir reflects a 25 percent surge in energy costs, expensive delays related to labor shortages and the cost of glass bottles stuck on cargo ships coming from China.” (“This Year’s Thanksgiving Feast Will Wallop The Wallet,” The New York Times, 10/25/2021)

…If Consumers Can Even Find Essential Thanksgiving Staples

“The supply-chain crunch is about to hit another part of American life: Thanksgiving dinner. Supplies of food and household items are 11% lower than normal as of Oct. 31, according to data from market-research firm IRI. That figure isn’t far from the bare shelves of March 2020, when supplies were down 13%. For grocery shoppers this holiday season, it means that someone with 20 items on their list would be out of luck on two of them. Although U.S. supermarket operators started purchasing holiday items early, aiming to avoid shortages, many holiday essentials are already in short supply.” (“Thanksgiving Dinner Staples Might Be Hard to Find Thanks to Supply-Chain Issues,” The Wall Street Journal, 11/09/2021)

• “By the end of October turkeys were over 60% out of stock—lower than the same time last year by more than 30 percentage points. A spokesperson for Butterball LLC, one of the largest U.S. turkey processors, said the company has been experiencing similar labor and supply challenges as other organizations and industries.” (“Thanksgiving Dinner Staples Might Be Hard to Find Thanks to Supply-Chain Issues,” The Wall Street Journal, 11/09/2021)

• “Cans of cranberry sauce are 20% out of stock and in decline. A representative on behalf of Ocean Spray Cranberries Inc., which manufactures cranberry sauce and other fruit products, said it has been experiencing issues with materials and transportation that may result in reduced availability.” (“Thanksgiving Dinner Staples Might Be Hard to Find Thanks to Supply-Chain Issues,” The Wall Street Journal, 11/09/2021)

• “In recent weeks, supplies of sweet potatoes and yams have remained below last year's levels. Currently, they are a quarter out of stock.” (“Thanksgiving Dinner Staples Might Be Hard to Find Thanks to Supply-Chain Issues,” The Wall Street Journal, 11/09/2021)

• “Supplies of refrigerated pie have been declining steadily over the past month. Besides turkey, this product will be among the most out-of-stock of essential Thanksgiving items. Frozen pies will be slightly easier to find.” (“Thanksgiving Dinner Staples Might Be Hard to Find Thanks to Supply-Chain Issues,” The Wall Street Journal, 11/09/2021)

Despite The Consumer Pain, The White House Chief Of Staff Incredibly Dismissed Rising Inflation As A ‘High Class’ Problem

White House Chief of Staff Ron Klain endorsed President Obama’s former top economic advisor asserting inflation was among issues that are ‘high class problems.’ (Ron Klain, @WHCOS, Twitter, 10/13/2021)

(Ron Klain, @WHCOS, Twitter, 10/13/2021)