Joe Biden and his media allies are trying to cover up this bad news, but Americans are feeling the pinch

Photo by Gage Skidmore, CC BY-SA 2.0, via Flickr, https://creativecommons.org/licenses/by-sa/2.0/

Americans know that prices are going through the roof.

No one needs a government report to know it is a problem, but it is infuriating when the Biden Administration and the media try to gaslight us.

But these new inflation numbers were just released, and this is very bad news for Biden and the U.S.

Inflation rose in February

The most recent inflation numbers show that the rate rose in February to 3.2%, despite efforts by the Federal Reserve to combat it.

The information comes from the federal Consumer Price Index (CPI), which measures the prices consumers pay for goods and services over time.

These higher numbers only add to voter concerns about the economy, just ahead of the 2024 Presidential Election.

When you niche-down on the details, the CPI rose 0.4% from January to February, higher than the last month-over-month increase, which was 0.3% from December to January.

When compared to February 2023, prices rose 3.2% last month, a larger CPI increase than the 3.1% rise from January 2024 when compared to January 2023.

Although energy prices are slightly decreasing, the costs of things like housing and transportation are significantly higher than they were last year, per the Bureau of Labor Statistics (BLS).

Inflation is below the four-decade high of 9.1% in June 2022, but it’s still significantly higher than the Federal Reserve’s target inflation rate of just 2%.

According to recent polls, voters are very concerned about the economy and inflation, and this most recent CPI report is not likely to calm those concerns.

The new data will be analyzed by the Federal Reserve when it decides whether or not to lower interest rates, which is unlikely.

Economists polled by Bloomberg expected the annual CPI rise to remain the same from January’s rate of 3.1%.

These numbers will play a vital role in the Fed’s decision next week when it’s expected to keep rates at their 23-year high of between 5.25% and 5.5%.

The Fed will detail how many cuts it’s planning at the March 20 meeting, as the central bank previously said it would reduce rates three times in 2024.

However, markets are more bullish, saying they expect anywhere between three and four cuts throughout 2024.

The pressure continues

The higher-than-expected inflation rate will play a major role in voter perception as well as how the Federal Reserve manages interest rates.

According to Torsten Slok, chief economist at Apollo Global Management, the CPI numbers will continue to put pressure on the central bank to keep interest rates higher for longer.

He said, “Inflation has started to move sideways and remains well above the Fed’s 2% inflation target.”

One of the biggest drivers of the rise in February was service-related prices as automobile insurance, healthcare costs, and other services have shown large cost increases.

Eswar Prasad, a professor at Cornell University, said, “These inflation numbers presage a rockier period ahead for the Fed. Although the U.S. economy has held up well so far, there is a risk that persistent inflation and the Fed’s response to it might turn a soft-landing scenario into a soft stagflation one.”

Informed American will keep you up-to-date on any developments to this ongoing story.