Runaway Inflation Puts Spending Bill In New Light
Inflation Increased 9.1 Percent Over The Past 12 Months
The Massachusetts House plans Wednesday to pass a bill authorizing $3.3 billion in spending and another $1 billion in tax rebates and relief, but all of that money is not going nearly as far as it used to.
The U.S. Bureau of Labor Statistics reported Wednesday that the Consumer Price Index increased 1.3 percent in June after rising 1 percent in May, and the all items index increased 9.1 percent over the last 12 months.
“The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors,” the bureau said. “The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising. The food index rose 1.0 percent in June, as did the food at home index.”
The 12-month increase in the all items index was the largest since the period ending November 1981. The energy index posted its largest surge since the period ending April 1980. The food index increased 10.4 percent for the 12-months ending June, the largest 12-month increase since the period ending February 1981.
Surging inflation has led to interest rate increases, and thrown up economic headwinds for the U.S. economy and political headaches for President Biden, who called tackling inflation his “top priority.”
In a statement, Biden called the latest numbers “unacceptably high” and “out-of-date.” He said the numbers do 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.”
Biden, who has also had difficulty pushing his priorities through a divided Congress, said he would ask the Congress to act this month on legislation “to reduce the cost of everyday expenses that are hitting American families, from prescription drugs to utility bills to health insurance premiums and to make more in America.”
AAA Massachusetts reported this week that the average gas price here is $4.74 per gallon, down 11 cents from last week. The latest average price is 30 cents lower than a month ago, and $1.72 higher than July 11, 2021.
