As per Government data released on Wednesday (July 13), in June, the United States saw a new peak of 9.1 per cent inflation. This faster-than-expected increase in the consumer price index (CPI) was driven by significant increases in gasoline prices, reports AFP. The US Labor Department has reported that this 9.1 per cent CPI spike over the past 12 months to June was the fastest increase in 40 years, the last such increase was witnessed in November 1981. The fast-rising costs have placed an excessive burden on American families and jeopardised US President Joe Biden’s already shaky approval ratings.
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However, as per an AFP report, Biden claims that while the inflation rate was “unacceptably high,” it was also “out of date” because it did not account for a noticeable decline in energy prices since mid-June.
According to AAA, the national average gas price recently decreased from $5.01 a month to $4.63 a gallon.
Recent price reductions had offered “important breathing room for American families. And, other commodities like wheat have fallen sharply since this report,” said the President.
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Since April 1980, the overall yearly growth in energy prices is at its highest level. Gasoline prices increased by 11.2 per cent last month and a startling 59.9 per cent over the previous year, accounting for half of the monthly rise.
Even while Biden insisted that combating inflation was the main priority, he acknowledged that his administration needed to “to make more progress, more quickly, in getting price increases under control.”
(With inputs from agencies)
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