Inflation continues to surge

 Zachary Halaschak:

The White House is preparing for another bad inflation report after June’s skyrocketing energy prices.

A day before the release of June’s much-anticipated consumer price index report, senior White House officials tried to get ahead of the likely bruising numbers by arguing that the underlying economic situation is better than the headline inflation rate would suggest.

The officials told reporters that the month of June experienced the highest gas prices on record and that those prices have since moderated a bit. The headline CPI number, which is expected to be more than the 8.6% annual inflation experienced in May, does not reflect the current reality, one official said.

Gas prices rose above $5 per gallon in June for the first time in history, in large part due to the war in Ukraine. As of Tuesday, they had fallen to $4.66, which is high but a rapid decline from June levels.

Gas prices alone weigh heavily in headline CPI reports.

Gas prices averaged $4.48 per gallon in May and shot up to an average of $4.92 last month, a nearly 10% increase. One official predicted that the spike would result in about a half-percentage-point bump in June’s month-over-month headline inflation.

...

Gas prices are high because of Biden's idiotic restrictions on production.  The war would have had little impact on gas prices if Biden had not first reduced the supply by deliberate restrictions on drilling.  In fact, it is unlikely we would have had a war in Ukraine if Biden's restrictions had not driven up the world price and thereby funded Putin's war efforts in Ukraine. Biden's deliberate driving up the price of oil and gas has been a worldwide disaster.

See, also:

U.S. Prices Jumped More Than Expected in June, Data Show, in Spur to Fed

  • Prices in June climbed 9.1 percent from a year earlier, the fastest pace since 1981, as soaring prices made everyday life more expensive.
  • The pickup in prices was broad and faster than expected, spelling trouble for the Federal Reserve. Follow updates.

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