Two things in America continue to trend upward: the monthly inflation rate compared to a year ago; and the Democratic Party’s panic level as the November midterms approach.
The federal government’s inflation rate set another 40-year high in June. Prices were 9.1% higher than they were a year ago. But a story in The Washington Post shows that the prices of many essential items — especially fuel and food — have increased much more than that.
Compared to June 2021 prices, gasoline was up 60%. Utility natural gas was up 38% and electricity was up 14%. Gasoline prices have dropped noticeably from a few weeks ago, down at least 50 cents. But we still have a long way to go before they return to their normal range.
As for food: Cereal and baked goods are up 14% over the past year, as are dairy products. The group of meat, poultry, fish and eggs are up 12%, while fruit and vegetables are up 8%.
And vehicles, which have been greatly affected by manufacturing supply-chain problems: New ones were 11% more expensive in June compared to a year ago. Used ones were up 7% because there were fewer available for purchase.
There’s no way to know whether inflation has peaked. Interest rates are rising, which should reduce economic activity. But the country has continued to increase employment. Individuals and businesses have trillions of dollars in unspent federal pandemic assistance. But the urge to buy may be doused by prices that seem to have gone up a lot more than 9.1%
Jack Ryan,
Enterprise-Journal
