Everyone knows that inflation has been painful for so many average Americans. That’s not controversial in the slightest. In recent months, though, Joe Biden and Kamala Harris have been saying that they have inflation now under control, all as a result of their economic policies. Is that true? Well it depends on how you look at it. Yes, it’s true that inflation has cooled from the astronomical levels from a year or two ago, but inflation is still way higher than economists believe is acceptable year-over-year inflation.

Current annualized inflation has been just under three percent, but the benchmark for inflation is actually two percent. Not only that, but the Biden and Harris administration has failed to get close to that two percent benchmark as the inflation rate has leveled out around that three percent mark. Inflation continues to hurt Americans in the worst way as prices of basic necessities that are non-negotiable for living are outpacing the three percent average inflation.

According to a new report, housing annualized inflation for housing and shelter is an eye-watering 5.1 percent. That metric alone accounts for more than 70 percent of all inflation during the previous twelve month period. Housing increases are also responsible for 90 percent of all inflation for the month of July this year.

MRC TV reports:

The index for shelter rose 0.4 percent in July, accounting for nearly 90 percent of the monthly increase in the all items index. Year-to-year, the cost of shelter is up 5.1 percent, accounting for over 70 percent of the total 12-month increase in the all items less food and energy index.

Shelter CPI has now been above 5% for 28 consecutive months, the longest period of elevated housing inflation since the early 1980s.https://t.co/l5IYmkf6Ih pic.twitter.com/3eqBcLXly5

— Charlie Bilello (@charliebilello) August 14, 2024

The report also adds that pricing of food is still outpacing the benchmark two percent inflation mark, even if it’s just by a little bit. The food index inflation mark was 2.2% annualized for the month of July, a trend that has been sticky for several months now.

There’s absolutely no way to ignore the fact that housing prices are extremely closely related to the Federal Reserve’s interest rate fixing, more so than other inflation index categories like food or energy.

With food, agricultural companies are not necessarily dependent on interest rates as a key part of their business. Thus, it’s possible for high interest rates to not necessarily mean higher food prices. That can be an indirect relationship, but the two are not linked. With housing, the two can’t be seperated at all. Housing inventory is specifically impacted by interest rate fixing.

Those who are building houses are more incentivized to build more inventory and add to the supply and demand atmosphere when interest rates are low. One reason is that taking on debt for investment is much more expensive. Another reason is that the demand plummets when the Federal Reserve implements giant rate hikes.

That’s what Biden and Harris administration has done. They’ve kept the Federal Reserve rates so high that it’s virtually made adding inventory to the housing market impossible, and this is shown in the reports that new house builds are at levels so low that they haven’t been seen in decades. This creates a market where millions of people are having to bid on housing inventory either to buy or to rent that is shrinking as population increases.

This shows the fatal flaw in the Biden-Harris admin’s choice to raise the Fed rates and keep them so high for so long. Combine that with the fact that the Biden-Harris administration continues to spend money faster than anyone can count it and you have a situation where inflation never actually gets under control.

The rate at which inflation is increasing slowed to 2.9% in July, but it’s still increasing. Here’s inflation under Biden/Harris compared to Trump. This is how working- and middle-class Americans experience inflation & it’s still ugly. pic.twitter.com/cPIf3B26yE

— Andy Puzder (@AndyPuzder) August 14, 2024

Everyday Americans Struggling To Keep Up

Reports say that the aggregation of the total inflation under the Biden administration is as much as 54% for car insurance, 50% for gas, 31% for electricity, and 23% for food. In a recent segment on Fox News, black voters in Pennsylvania said that inflation is a seriously major issue that’s on their minds this election year.

One black mother nearly broke down in tears thinking about a single mother who might be living on food stamps trying to get by. She said “they are k*lling us without k*lling us”. She also mentioned how some parents are left with the decision to let their kids eat while they skip a meal.

Consumers are still feeling the pain of inflation and are still struggling to afford basic necessities to live.

Under Biden-Harris:

• Car insurance is up 54%;
• Gas is up 50.5%;
• Electricity is up 31.7%;
• Eating out is up 23%;
• Groceries are up 21.6%.

This should… pic.twitter.com/qkxaEiQgBz

— Rep. Wesley Hunt Press Office (@RepWPH) August 15, 2024

Expect this issue to take more of a center stage, as economics always does in a presidential election year, as we inch closer to November when voters will be deciding who they want to be President of the United States.

Do you think the Biden-Harris administration has done a good job handling inflation? Comment your thoughts below.