In June, inflation increased to 9.1%, up from 1.4% at the start of President Joe Biden’s administration, and current inflation rates are stoking fears of a possible recession.
The U.S. Bureau of Labor Statistics (BLS) indicated that the June figure is a 1.3% increase from the previous month. At 9.1%, the rate indicates that during the last year, the rate of inflation for the “all items index” has risen that amount before being adjusted seasonally. John Cooper, director for media and public relations at the Heritage Foundation, is placing blame at Biden’s feet.
“When Joe Biden took office, inflation was at 1.4%,” Cooper said in a July 13 tweet. “Today it's 9.1%.”
According to the BLS news release, the June increase was driven by rises in the indexes for food, shelter and gasoline.
The Wall Street Journal noted that the June inflation rate marked the highest level of inflation in the U.S. in four decades.
The news also may be causing some jitters on Wall Street, with Bloomberg reporting that the Federal Reserve could decide later this month to raise its benchmark rate 75 basis points, which could drive fears of a recession, “despite strong jobs data that shows unemployment near a five-decade low.”
When asked about recent inflation numbers in light of the Biden administration’s economic policy, White House Press Secretary Karine Jean-Pierre told The Hill, “We expect the headline number, which includes gas and food, to be highly elevated mainly because gas prices were so elevated in June. Gas and food prices continue to be heavily impacted by the war in Ukraine, and there are a few important points to keep in mind when we get this backwards-looking data.”
