The high inflation rate has slammed Americans in the pocketbooks as basic costs of living - such as food, electricity, gas, and shelter - have skyrocketed during Joe Biden's presidency.
Inflation hit a 40-year high in January, with prices rising 7.5% from last year. That number was driven by higher costs of food, electricity and shelter costs, the Bureau of Labor Statistics said on Thursday. Medical costs have also risen during the pandemic.
The number was an unpleasant surprise for the White House, which continues to argue that inflation will naturally go down over the next year. It also presents a dilemma for the Federal Reserve, which is weighing raising interest rates in March.
But while Washington dithers, Americans are paying the price.
Apartment rental costs rose 0.5% in January, the fastest pace in 20 years. Electricity prices were up 4.2% last month, the sharpest rise in 15 years and a 10% increase from last year.
Additionally last month, household furniture and supplies rose 1.6%, the largest one-month increase on records dating to 1967.
The average U.S. household is spending an additional $250 a month because of inflation, according to analysts.
'A lot of people are hurting because of high inflation. $250 a month - that’s a big burden,' Ryan Sweet, a senior economist at Moody’s Analytics who conducted the analysis, told the Wall Street Journal.
Apartment rental costs rose 0.5% in January, the fastest pace in 20 years and electricity prices were up 4.2% last month, the sharpest rise in 15 years and a 10% increase from last year
Clothing prices were also up - 1.1% and household furniture and supplies rose 1.6%, the largest one-month increase on records dating to 1967.
Inflation hit a 40-year high of 7.5 percent, the Labor Department announced Thursday, a figure not seen since the Carter administration
Prices rose for a sixth consecutive month, meaning Americans have consistently had to shell out more for everyday life since August 2021
Wages have increased but not enough to keep up with rising costs of basic necessities. Even with wages up around 5.7%, taken in with inflation, it's resulted in an average 2% pay cut for workers.
Biden's poll numbers have sunk as inflation has risen. His approval rating hit below 40% this week for the first time in the RealClearPolitics polling average. Americans have given him low marks for his handling of the economy and have expressed frustration with the current economic situation.
Grocery prices were up nearly across the board in January, averaging a 1% increase for the month.
President Joe Biden, in addressing the record high inflation, repeated his argument it would go down by the end of the year
Cereals and baked goods saw the highest increase, rising 1.8%. The price of dairy goods rose 1.1% while fruits and vegetables rose 0.9% and meats, poultry, fish, and eggs rose 0.3%.
The only food group that didn't see a price rise raise was nonalchoholic beverages, which was unchanged.
The 'Great Inflation' period from 1965 to 1982 was marked by soaring inflation that topped 14 percent by 1980
The January inflation reading on Thursday put annual inflation at 7.5 percent, the highest level since February 1982, as the period known as the 'Great Inflation' was coming to a close.
Spurred by failed monetary policy and two oil crises in 1973 and 1979, the period from 1965 to 1982 was marked by soaring inflation that
