On Wednesday, we saw the June consumer price index jump 1.3 percent to 9.1 percent, a new high annual increase in more than 40 years.
The reaction of the Biden team was to try to spin the number as already “out-of-date,” because gas prices had come down a little. Both White House Press Secretary Karine Jean-Pierre and NEC Director Brian Deese went with this tactic. The high number stood in sharp contrast to the prediction of White House Chief of Staff Ron Klain last year that in 2022, we would be at 2.1.
But now the producer price index is out, and it’s jumped to 11.3 percent, at 1.1 percent, higher than the 0.8 estimate.
Fox Business’ Stuart Varney spoke about how bad it was, with his guest, market watcher David Nicholas.
Almost 4% decline in year-over-year wage growth.
— David Nicholas (@DavidANicholas) July 14, 2022
Nicholas said this was an indication that things were going to continue to get ugly. In other words, the claims of the Biden team — that the CPI numbers were outdated — were bunk. This number indicates that the administration’s assessment is wrong, yet again. Nicholas also noted that while wage growth went up half a percent, month over month, the CPI was up over 1.1 percent, so the real wage growth was still down. He also explained that wage growth was down 4 percent year over year. Biden has continually lied about this, claiming real wages are up.
Joe Biden is the pay cut president.
Year-over-year real wage growth – your paycheck accounting for inflation – has been negative EVERY SINGLE MONTH since Biden passed his $1.9T “stimulus.”
By contrast, real wages were only negative one month during Trump’s entire 4-year term. pic.twitter.com/2a1aR5yiU8
— Tommy Pigott (@TommyPigott) July 11, 2022
As economist Peter Schiff observed, those PPI costs are likely to be passed on to consumers in the future. “Meanwhile, weekly unemployment claims shot up again, hitting 244K, the highest level since Nov. of 2021,” he noted.
The PPI spiked a more than expected 1.1% in June and 11.3% YoY. That means more pressure on businesses to pass on their higher costs to consumers. Meanwhile weekly unemployment claims shot up again, hitting 244K, the highest level since Nov. of 2021. #Recession + high #inflation.
— Peter Schiff (@PeterSchiff) July 14, 2022
— Richard Bernstein Advisors (@RBAdvisors) July 14, 2022
Biden has been fond of trying to attack President Donald Trump by claiming that there were “long lines” for food during Trump’s term.
BIDEN: "Remember those long lines of cars stretching miles back waiting for just a box of food?"
That's happening today as parents wait desperately for baby formula. pic.twitter.com/jabNGfz7mT
— RNC Research (@RNCResearch) June 14, 2022
But that was briefly, with the economy locked down, during the pandemic. Not exactly the fault of his economic policies. Meanwhile, there are long lines now at food banks around the country, according to the AP, and that’s all on Joe Biden due to his horrible policies.
Unfortunately, the PPI indicates there may not be any relief coming soon.