It was a painful struggle to bring inflation down to a manageable rate 40 years ago. The effort was successful, but now inflation is back to a level where it hasn’t been since 1982.
If inflation persists, the Democrats can probably kiss the White House goodbye in 2024, no matter who they run.
According to the Wall Street Journal:
U.S. inflation hit 7% in 2021 as pandemic-related supply and demand imbalances, along with stimulus intended to shore up the economy, put the biggest pressure on prices in nearly four decades.
The Labor Department said the consumer-price index—which measures what consumers pay for goods and services from the same month a year ago, up from 6.8% in November. That was the fastest pace since 1982 and marked the third straight month in which inflation exceeded 6%.
The so-called core price index, which excludes the often-volatile categories of food and energy, climbed 5.5% in December from a year earlier. That was a bigger increase than November’s 4.9% rise, and the highest rate since 1991.
On a monthly basis, the CPI increased a seasonally adjusted 0.5% in December from the preceding month, decelerating from October and November . . .
Federal Reserve Board Chairman Jerome Powell in congressional testimony Tuesday said he was optimistic supply-chain issues would ease this year and help bring inflation down.
The December inflation data also reflects the initial impact of the Omicron variant, which is posing a new threat to the economy as the pandemic enters its third year.