The U.S. has experienced 13 months in a row of high inflation since the Biden administration dismissed concerns about rising costs, saying the contributing factors were “transient.”
“We have seen some inflation in recent months, and we – at least on an annual basis – will continue, I think throughout the rest of the year, to see higher inflation rates, perhaps around 3 percent,” the finance minister said. Janet Yellen said of inflation in early June 2021. “But I personally think this represents transient factors.”
About a month later, in July, President Biden suggested that there was no reason to worry about inflation, explaining that it would be “temporary.”
“We also know that as our economy has come roaring back, we have seen some price increases,” Biden said in a speech on July 19 last year. “Some people have raised concerns that this could be a sign of sustained inflation. But that is not our view.”
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Biden added: “Our experts believe and the data show that most of the price increases we have seen are expected to be temporary.”
On Wednesday, about a year after Yellen, Biden and Federal Reserve Chairman Jerome Powell all downplayed inflation at 5.4% in the US, inflation rose to 9.1%, which has not been seen in four decades.
It marks fastest inflation rate since December 1981.
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The so-called core prices, which exclude more volatile measurements of food and energy, increased by 5.9% compared to the previous year. Core prices also rose 0.7% on a monthly basis – higher than in April and May – suggesting that underlying inflationary pressures remain strong and widespread.
The price increases were extensive, suggesting that inflation may not be close to its peak: Energy prices increased 7.5% in June compared to the previous month and is an increase of 41.6% compared to last year. Gasoline costs on average 59.9% more than a year ago and 11.2% more than in May. The food index, meanwhile, rose 1% in June as consumers paid more for goods such as cereals, chicken, milk and fresh vegetables.
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Yellen admitted in May this year that she “took the wrong path that inflation would take.” Powell has also delivered several mea culpas over his wrong inflation call.
However, the White House has continued to declare the strength of the US economy as recently as last week, when White House Press Secretary Karine Jean-Pierre claimed that “we are stronger economically than we have been in history. . “
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The White House did not immediately respond to a request for comment from Fox New Digital.
Fox News’ Megan Henney contributed to this report