Seven Straight Months Of Inflation Exceeding 5% Is A Biden Administration Policy Failure

‘Prices Rose At The Fastest Pace In 40 Years In December, Increasing 7 Percent Over The Same Period A Year Ago, And Cementing 2021 As A Year Marked By Soaring Inflation,’ ‘The Latest Evidence That Rising Costs For Food, Rent And Other Necessities Are Heightening The Financial Pressures On America’s Households’

SENATE REPUBLICAN LEADER MITCH McCONNELL (R-KY): “The Democrats’ wasteful spending last spring helped ignite the worst inflation in 40 years. But our colleagues spent the rest of 2021 trying to assemble another, even bigger, even more reckless taxing and spending spree. Their reaction to the rising prices and family hardships their policies caused was to try to inflate their way out of inflation. The experts say that when you strip away the budget gimmicks, their proposal would cost almost $5 trillion. And all that reckless borrowing and money-printing was for far-left policies that would hurt American families and help China…. All this, paired with historic, crushing tax hikes… and trillions more dollars to make inflation even worse. It was a merrier Christmas for American families because this awful bill was put aside. Working Americans need it to stay on the shelf.” (Sen. McConnell, Remarks, 1/04/2022)

  • LEADER McCONNELL: “As 2022 gets underway, working Americans and their families are facing a steady stream of significant challenges. The fastest-growing inflation in almost 40 years; violent crime rates that continue to rise, with many of our largest cities setting new all-time records for murders; a southern border that remains in crisis; a new, highly-contagious variant of the virus that President Biden promised he would personally crush; too few tests and too-slow new treatments on this Administration’s watch; and another rolling wave of school shutdowns, as Big Labor bosses continue to make hostages out of children’s futures over a virus that leaves children largely unharmed.” (Sen. McConnell, Remarks, 1/05/2022)


Inflation In December Increased 7% Year-On-Year, ‘The Fastest Pace In 40 Years’ And The Seventh Straight Month In Which Inflation Topped 5%

“U.S. inflation closed out 2021 at its highest level since 1982 as robust consumer demand exacerbated pandemic-related supply shortages. The Labor Department said the consumer-price index—which measures what consumers pay for goods and services—rose 7% in December from the same month a year ago, up from 6.8% in November. That was the fastest pace since 1982 and marked the third straight month in which inflation exceeded 6%.” (“2021 Is Expected to Rank as Biggest Year for Inflation in Four Decades”, The Wall Street Journal, 1/12/2022)

“Prices rose at the fastest pace in 40 years in December, increasing 7 percent over the same period a year ago, and cementing 2021 as a year marked by soaring inflation … Indeed, 2021 went down as the worst year for inflation since 1982 … Higher prices seeped into just about everything households and businesses buy, raising alarms for policymakers at the Federal Reserve and White House that inflation has spread throughout the economy. There’s no telling when prices will fall to more sustainable levels, and officials within the Fed and Biden administration expect high inflation will persist through much of 2022.” (“December Prices Rise 7 Percent, Compared To A Year Ago, As 2021 Inflation Reaches Highest In 40 Years,” The Washington Post, 1/12/2022)

“Prices paid by U.S. consumers jumped 7% in December from a year earlier, the highest inflation rate since 1982 and the latest evidence that rising costs for food, rent and other necessities are heightening the financial pressures on America’s households…. Rising prices have wiped out the healthy pay increases that many Americans have been receiving, making it harder for households, especially lower-income families, to afford basic expenses. Polls show that inflation has started displacing even the coronavirus as a public concern, making clear the political threat it poses to President Joe Biden and congressional Democrats.” (“US Consumer Prices Soared 7% In Past Year, Most Since 1982,” The Associated Press, 1/12/2022)

December marked the seventh consecutive month in which inflation topped 5 percent. (Bureau of Labor Statistics, Accessed 1/12/2022)

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

The price of all items increased 7% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 1/12/2022)

Food prices increased 6.3% year-on-year, the largest increase since 2008. (Bureau of Labor Statistics, Accessed 1/12/2022)

Food at home (grocery) prices increased 6.5% year-on-year, the largest increase since 2008. (Bureau of Labor Statistics, Accessed 1/12/2022)

Prices for food away from home increased 6% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 1/12/2022)

Prices for new cars and trucks increased 11.8% year-on-year, the largest increase ever. (Bureau of Labor Statistics, Accessed 1/12/2022)

Prices for housing increased 5.1% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 1/12/2022)

Prices for rent of shelter increased 4.2% year-on-year, the largest increase since 2007. (Bureau of Labor Statistics, Accessed 1/12/2022)


Small Businesses Are Struggling With Inflation In Ways ‘Not Seen Since The Early 1980’s’

“Twenty-two percent of small business owners reported that inflation was their single most important problem encountered in operating their business. Price raising activities has reached levels not seen since the early 1980’s when prices were rising at double digit rates.” (“December 2021 Report: Small Business Owners Reporting Inflation as Biggest Problem Highest Since 1981,” NFIB, 12/2021)

Small Business Owners Are Reporting Inflation As Their ‘Single Most Important Problem’ At Levels Not Seen Since 1981

“Twenty-two percent report inflation as the single most important problem operating their business, a 20-point increase from the beginning of 2021 and the highest level since Q4 1981.” (“December 2021 Report: Small Business Owners Reporting Inflation as Biggest Problem Highest Since 1981,” NFIB, 12/2021)

Nearly Half Of Small Businesses Signal They’re Planning More Price Increases In The Next Three Months

“Many companies plan to pass on higher labor and materials costs to consumers. In December, some 49% of small businesses said they planned to raise prices in the next three months, on net, according to the National Federation of Independent Business, a trade association. That figure is down slightly from October and November, but close to the highest share since monthly records began in 1986.” (“2021 Is Expected to Rank as Biggest Year for Inflation in Four Decades”, The Wall Street Journal, 1/12/2022)


As Inflation Rises, Americans’ Paychecks Are Getting Smaller, With Year-On-Year Real Average Weekly Earnings Decreasing 2.3 Percent

“Real average hourly earnings decreased 2.4 percent, seasonally adjusted, from December 2020 to December 2021. The change in real average hourly earnings combined with no change in the average workweek resulted in a 2.3-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, 1/12/2022)


REMINDER: Biden Administration Officials Admit That ‘The Spending That We Did’ Is Fueling The Worst Inflation In Four Decades

TREASURY SECRETARY JANET YELLEN: “[W]e are going through a period of inflation that’s higher than Americans have seen in a long time. And it’s something that’s obviously a concern and worrying them.… And, remember, the spending that we did that partially has caused this high demand for goods, it’s been very important in making sure that the pandemic hasn’t had a scarring effect on American workers.” (CNN, 10/24/2021)

“President Biden [in November] conceded that inflation is at a three-decade high because ‘people have more money now’ as a result of his $1.9 trillion COVID-19 stimulus legislation, recognizing a central point made by people who are arguing against a nearly $2 trillion sequel. Biden unexpectedly endorsed the stance of his critics who have said the US dollar is losing its buying power as a result of the government printing money to cover COVID-19 aid. The president said stimulus funds that he signed into law are in part to blame for demand exceeding the supply of goods, causing a backlog at major US ports and the highest rate of annual inflation since 1990.” (“Biden Concedes His COVID Stimulus Checks Fueled Spike In Inflation,” New York Post, 11/10/2021)

  • PRESIDENT JOE BIDEN: “And the irony is: People have more money now because of the first major piece of legislation I passed. You all got checks for $1,400. You got checks for a whole range of things. … But what happens if there’s nothing to buy and you got more money? You compete for getting it there. It creates a real problem. … Well, with more people with money buying product and less product to buy, what happens? The supply chain is the reason, and the answer is you guys — and I’ll get to that in a minute — but what happens? Prices go up. … But it also means we got a higher demand for goods at the same time we’re facing disruptions in the supplies to make those goods. [T]his is a recipe for delays and for higher prices, and people are feeling it. They’re feeling it. Did you ever think you’d be paying this much for a gallon of gas? In some parts of California, they’re paying $4.50 a gallon.” (President Biden, Remarks, 11/10/2021)


Sen. Joe Manchin (D-WV): ‘Inflation’s The Biggest Threat I Think We Have Right Now,’ ‘It’s Not Transitory, It’s Real, It’s Harming Every West Virginian’

SEN. JOE MANCHIN (D-WV): “[M]y concerns I had, and I still have these concerns and where I’m at right now, the inflation that I was concerned about, it’s not transitory, it’s real, it’s harming every West Virginian. It’s making it almost difficult for them to continue, to go to their jobs, the cost of gasoline, the cost of groceries, the cost of utility bills -- all of these things are hitting in every aspect of their life…. So when you have these things coming at you the way they are right now, I’ve always said this, Bret, if I can’t go home and explain it to the people of West Virginia, I can’t vote for it. And I cannot vote to continue with this piece of legislation. I just can’t. I’ve tried everything humanly possible. I can’t get there.” (Fox’s “Fox News Sunday,” 12/19/2021)

SEN. MANCHIN: “My Democratic colleagues in Washington are determined to dramatically reshape our society in a way that leaves our country even more vulnerable to the threats we face. I cannot take that risk with a staggering debt of more than $29 trillion and inflation taxes that are real and harmful to every hard-working American at the gasoline pumps, grocery stores and utility bills with no end in sight.” (Sen. Manchin, Press Release, 12/19/2021)

SEN. MANCHIN: “So I told [Democrats in Congress,] this is very far-reaching, I said, and especially—and you heard me come out early in saying I’m concerned about inflation, I’m concerned about COVID, I’m concerned about geopolitical unrest. This is three, four, five months ago. Guess what? Today, inflation’s the biggest threat I think we have right now, based in West Virginia and around the country I hear from. The higher prices, the higher costs…. [W]e’ve sent out $5.4 trillion to try to help people … And then on top of that we dodged a financial crisis but we’re getting into it because we’re making more of a crisis on the individual person today because of high costs of inflation.” (MetroNews’ “Talkline with Hoppy Kercheval,” 12/20/2021)

SEN. MANCHIN: “Inflation is a serious issue. These programs will cost more than they are saying. I can’t add to the debt.” (CNN’s Manu Raju, @mkraju, Twitter, 12/21/2021)

SEN. MANCHIN: “Inflation’s still a concern. It’s still over 6%.” (Punchbowl News Midday, 1/04/2022)



Related Issues: Inflation, Economy