The Morning with Maria panel examines March core CPI, expected Fed rate cuts, and the overall market outlook.
Energy prices have soared by more than a third since President Biden took office in 2021 as stubborn inflation continues to burden Americans.
Gasoline and housing costs were the biggest contributors to the 0.4% increase in March, according to a new Consumer Price Index (CPI) report released Tuesday by the Labor Department. Prices rose 3.5% from the same period last year, exceeding economists’ expectations. Oil prices reached a five-month high.
“We’re not seeing any improvement and we’re moving in the wrong direction,” said Greg McBride, chief financial analyst at Bankrate.
“The usual troubles continue: shelter, auto insurance, maintenance and repairs, service costs. Add electricity to that list, up 0.9% in March and 5% over the past year,” he said. added.
Inflation accelerates more than expected in March as prices remain high
Tuesday’s inflation figures ended a frightening three years for energy consumers. Total energy costs rose 36.9% in March compared to January 2021, according to the Department of Labor’s Bureau of Labor Statistics.
Energy in all categories is more expensive today than it was three years ago. In January 2021, electricity costs were $0.14 per kilowatt-hour; as of March 2024, they were $0.17, an increase of 28%.
Energy prices have increased nearly 37% since President Biden took office in January 2021. (Fox News/Fox News)
Any American driver knows that gas prices have soared to exorbitant highs in 2022 due to the disruption of international oil production due to the war between Russia and Ukraine. Prices have since fallen, but overall gasoline prices are still 52.1% higher than when Biden took office. The average price of a gallon of gasoline was $2.38 on January 18, 2021, and is now $3.62, according to Energy Information Administration data.
Diesel prices tell a similar story, rising 50.4% over the past three years from $2.70 per gallon in January 2021 to $4.06 per gallon today.
Jamie Dimon warns that inflation, interest rates may remain high
Electricity prices have increased by 27.9% since President Biden took office. (Fox News/Fox News)
Biden, who is running for re-election in 2024, is seeking to counter rising energy prices by increasing government spending on clean energy alternatives.
The Inflation Control Act of 2022 invests $369 billion in what Democrats have dubbed “Energy Security and Climate Change” provisions, which aim to cut carbon emissions by 40% by 2030. This equates to billions of dollars in incentives and tax breaks. The legislation would cover these costs with a new 15% corporate minimum tax and additional funding for the Internal Revenue Service to crack down on tax avoidance.
Gasoline prices have increased 52.1% since President Biden took office. (Fox News/Fox News)
On Friday, the White House announced that $20 billion in IRA funds will be distributed from the Environmental Protection Agency to nonprofit organizations to fund tens of thousands of clean energy projects across the country. The administration also made verbal commitments to: Phase out coal-fired power plants Expanding nationally, 56 other countries have joined the Coal Power Alliance.
moreover, Wall Street Journal analysis It turns out the Biden administration has leased fewer acres for oil and gas drilling on offshore and federal lands than any other presidential administration dating back to World War II.
Biden administration cancels plan to replenish emergency oil reserves amid rising prices
Since President Biden took office, diesel prices have increased by 50.4%. (Fox News/Fox News)
But critics say the president’s pursuit of clean energy is misplaced and point to Tuesday’s CPI report as evidence that the anti-inflation law has failed.
“With this legislation, Joe Biden and his supporters celebrated the passage of the largest green energy slush fund in history, “The only effect is an overall increase in prices.” Energy industry group.
“From his first day in office, Joe Biden has continued to pursue policies that are outside the norm, but in the best interests of all Americans,” Turner added.
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President Biden has depleted the Strategic Petroleum Reserve by 42%. (Fox News/Fox News)
Despite Biden’s commitment to clean energy, inflation forced the president to take action and begin depleting the Strategic Petroleum Reserve (SPR) in late 2021 to combat rising fuel prices. The president also visited Saudi Arabia in 2022 to ask OPEC countries to increase oil production.
The Biden administration last week canceled plans to buy up to 3 million barrels of oil to replenish the SPR in response to soaring oil prices.
“Thanks to Joe Biden, American families are having a hard time escaping the darkness. It has nothing to do with the eclipse,” Turner said. “Americans are paying huge costs, both at the pump and on their electric bills. And Joe Biden’s proposal is all about draining the SPR, begging Saudi Arabia for more oil, and then blaming all the failures on Russia.” It’s just a pathetic gimmick, like blaming it.”
