“The Big Money Show” co-host Brian Bremberg on “Bernie & Co.” talks about how inflation under President Biden is making life unaffordable for Americans. It showed whether there were any.
President Biden responded to reports showing inflation was higher than expected in February, issuing a statement saying prices are lower than a year ago, though not lower than when he took office.
The Consumer Price Index, which broadly measures the prices of daily necessities including gasoline, food and rent, rose 0.4% in February from the previous month, according to a report released Tuesday by the Labor Department. This figure exceeded the 0.3% month-on-month increase recorded in January.
“My top economic priority is cutting costs, and today’s report shows we are continuing to make progress on that front, with inflation down two-thirds from its peak,” Biden said in a statement. “The annual core inflation rate is the lowest since May 2021,” he said. Wages have risen faster than prices since the pandemic.
“Prices for major household purchases like gasoline, milk, eggs and electronics are lower than they were a year ago,” Biden said. “While inflation is falling, unemployment is at its highest point in more than 50 years. “It’s below 4%.”
Inflation was higher than expected in February as prices continued to rise
A customer shops in the meat section of a Costco store on February 28, 2024 in Teterboro, New Jersey. Food prices have increased by more than 21% since 2021. (Stephanie Keith/Bloomberg via Getty Images/Getty Images)
But what the president failed to mention is that prices for common groceries are still higher than they were in January 2021, when he took office. A previous FOX Business report examined how inflation is driving up milk and egg prices, based on data from the U.S. Bureau of Labor Statistics.
A similar analysis of the prices of butter, boneless chicken breast, white bread, and sugar shows that prices have increased compared to three years ago.
The price of a stick of butter is nearly $1 per pound more than it was when Biden took office. In January 2021, the average price of butter was $3.64 per pound; as of February 2024, it was selling for $4.63 per pound, an increase of 27%.
The average price per pound of butter was $4.63 in February 2024, compared to $3.64 in January 2021. (Fox News/Fox News)
Boneless chicken breast prices increased 26% from $3.26 per pound in January 2021 to $4.11 per pound in February 2024.
White bread is 30% more expensive per pound, going up to $2.01 per pound in February, compared to $1.55 per pound in January 2021.
Additionally, white sugar has increased in cost per pound from $0.68 to $0.98 over the past three years, an increase of 44%.
How it started…how it’s progressing: Egg, milk and steak prices have risen since Biden took office
The average price per pound of boneless chicken breast was $3.26 in January 2021 and $4.11 in February 2024. (Fox News/Fox News)
Food prices are rising for several reasons, including ongoing supply chain issues. minimum cattle inventory An outbreak of avian influenza in 1973 affected poultry supplies and caused chicken and egg prices to soar. There was also a global grain shortage due to the protracted conflict in Ukraine. Wages for food service workers in grocery stores, warehouses and processing plants are also rising, meaning many of these companies are passing those costs on to consumers.
According to CPI statistics for February, the biggest drivers of inflation last month were housing and gas costs, accounting for 60% of the month’s overall increase.
The average price per pound of white bread increased from $1.55 in January 2021 to $2.01 in February 2024. (Fox News/Fox News)
Rent increased by 0.4% in the same month, and by 5.8% compared to the same period last year. Meanwhile, gasoline prices rose 3.8% during February. However, compared to the previous year, the decrease was only 3.9%.
In fact, food prices were a positive sign in the inflation report, unchanged from January. However, food prices are still about 1% higher than at the same time last year, and overall food prices have risen more than 21% since the start of 2021.
Overall, the report shows that inflation has fallen significantly from its peak of 9.1%, but remains above the Federal Reserve’s 2% target.
Why are groceries still so expensive?
The average price of white sugar increased from $0.68 per pound in January 2021 to $0.98 per pound as of February 2024. (Fox News/Fox News)
“What does the Federal Reserve get out of this? Mainly given that the March interest rate change is already off the table,” said Mark Hamrick, senior economic analyst at Bankrate. “We will be looking for additional data.”
“Officials have said they can afford to be patient in considering the timing and rate cuts,” Hamrick said. “If inflation becomes less sticky, they will feel more comfortable about cutting rates.” Ta. “While the slightly higher than expected CPI does not further boost confidence, it does allow us to ponder the possibilities for May, June and July.”
of federal reserve As policymakers try to decide the next development for interest rates in 2024, they indicated they are closely monitoring the CPI report for evidence that inflation continues to subside.
Remaining high food prices undermine the Biden administration’s claims of a strong economy. (Hannah Baier/Bloomberg via Getty Images/Getty Images)
Central bank officials have opened the door to lower interest rates this year, but have said they will not do so until they are confident that inflation can be overcome.
Fed Chairman Jerome Powell testified on Capitol Hill last week, saying, “The committee does not believe it is appropriate to lower the target range until there is greater confidence that inflation is on a sustained path toward 2%.” I’m thinking about it.”
Alfredo Ortiz, president and CEO of Job Creators Network, blamed Biden’s policies and Democrats’ “continued reckless spending” for persistent inflation.
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“Contrary to Mr. Biden’s claims that he has reduced the deficit, Democrats under his leadership have locked in a deficit of nearly $2 trillion a year, even when the economy is supposed to be running at full capacity. Ordinary Americans and small businesses are paying the price in their daily lives for much higher costs,” Ortiz said.
“Standards of living are falling as inflation is once again rising faster than wages. This continued high inflation will likely force the Federal Reserve to delay lowering rates. This means that credit prices are much higher and the credit crunch continues for small and medium-sized businesses.And the situation today is “on top of the historic price increases that have already occurred under the Biden administration.” “The rise is occurring, exacerbating the rising cost of living felt by all Americans. The only solution to inflation other than a recession is to immediately and dramatically reduce government spending.”
FOX Business’ Megan Henney contributed to this report.
