Indeed, you’re not mistaken—virtually everything in your daily life is becoming more costly. President Joe Biden is attempting to put a positive spin on the latest inflation figures, claiming it’s good news for his economic policies, but for everyday Americans, the reality is starkly different. In October, the Consumer Price Index (CPI) rose by 3.2% compared to the previous year, a figure slightly below expectations. However, for the hardworking folks feeling the pinch at the grocery store, at the gas pump, and in their housing costs, these numbers offer little solace.
When we compare prices to October 2020, a period marked by COVID-induced lockdowns, the shock is palpable. Prices have soared by a staggering 18.2%, leaving families struggling to make ends meet. According to the US Inflation Calculator, which tracks the cost of essential food items based on the monthly CPI, a dozen grade-A eggs now cost a whopping $2.07, up from $1.41—representing a jaw-dropping 47% increase over three years.
Coffee, another pantry staple, has seen a similar trajectory, with a pound of ground beans now averaging $6.18, up from $4.52 in October 2020. Basic necessities like white bread, potato chips, and chocolate chip cookies have all surged by around 33%, increasing the financial burden on American households. Ground chuck, bacon, sirloin steak, and chicken prices have also climbed by more than 22%.
Moody’s chief economist, Mark Zandi, doesn’t offer much hope for those longing for a decrease in grocery prices. He remarked, “I wouldn’t count on prices broadly declining,” underscoring the continuing pressure on consumers.
Housing costs have skyrocketed as well, with rents surging by over 20% in the past three years. The median monthly asking rent in the US reached $2,011 last month, compared to $1,667 in October 2020. Monthly mortgage payments have followed a similar trajectory, with the average payment in 2020 at $1,621, a figure that has risen to a staggering $2,317 by the end of 2022, marking a 42.9% increase.
The cost of a new car has also seen an upward trend, reaching $48,008 as of March this year, compared to $41,152 in 2020, according to data from MoneyGeek. Meanwhile, filling up your car with gas has become an increasingly painful expense, with an average price of $3.35 per gallon as of Wednesday, nearly 36% higher than the $2.14 average in October 2020.
Mark Zandi points to the pandemic and the Russian war in Ukraine as the primary drivers of this inflationary surge, but he offers a glimmer of hope, suggesting that as these shocks recede into the past, inflation will start to subside. However, for many Americans, relief can’t come soon enough.
What’s particularly troubling is that the rise in inflation has outpaced the increase in hourly wages. In October 2020, the average hourly earnings for all US employees stood at $29.50, while last month, they had only risen to $34, according to federal data. So, while inflation may be slowing down, it hasn’t translated into lower costs for essential items.
While President Joe Biden continues to champion his economic agenda, promising to reduce the government’s deficit, recent Treasury data paints a different picture. The national debt has doubled over the past year, skyrocketing from approximately $1 trillion to a staggering $2 trillion—yes, with a “T.” It’s a stark reminder that when it comes to fiscal responsibility, actions speak louder than words.
In conclusion, the rising tide of inflation is a real and pressing concern for everyday Americans. While the government may try to spin the numbers, the impact on people’s wallets is undeniable. It’s time for policymakers to take concrete actions to address the root causes of this economic challenge and provide relief to those who are feeling the squeeze.
