(Fwrd Axis) — Inflation in the United States rose 9.1 percent in June, the highest in 40 years and higher than the previous reading of 8.6 percent in May according to the Bureau of Labor Statistics.
Reasons for the high inflation rates are due to high gasoline prices, which were up nearly 60% over the year despite falling recently, Americans paid $5 per gallon in the month of June. Electricity and natural gas prices were up by 13.7% and 38.4%, respectively, and energy prices rose by 41.6% yearly.
President Joe Biden released a statement on Wednesday as he arrived in Israel for his first trip to the Middle East since taking office, saying the report of inflation was “unacceptably high” but also added that it is “also out of date,” since gas prices have fallen recently.
“Energy alone comprised nearly half of the monthly increase in inflation,” Biden said in a statement. “Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June. Those savings are providing important breathing room for American families. And, other commodities like wheat have fallen sharply since this report.”
The President went on to add that tackling inflation is his “top priority”, something he has repeatedly said for months.
The news has renewed fears of a recession coming in the near future, which would make it the first since 2008 when former President Barack Obama was in his first term in office.
Both Republicans and Democrats slammed the high inflation report with the GOP wanting to use it as an angle for the midterms later this fall. Meanwhile, Sen. Joe Manchin (D-West.Va) said leaders in Washington have ignored the problem for far too long.
“For more than a year, leaders in Washington have ignored the serious concerns raised by myself and others about the rising cost of inflation,” he said. “While Washington seems to now understand this reality, it is time for us to work together to get unnecessary spending under control, produce more energy at home and take more active and serious steps to address this record inflation that now poses a clear and present danger to our economy.
“No matter what spending aspirations some in Congress may have, it is clear to anyone who visits a grocery store or a gas station that we cannot add any more fuel to this inflation fire.”