Column: Inflation crisis continues to worsen

Are we headed towards a recession? That’s the question.

Last week, the Bureau of Labor Statistics (BLS) released its Consumer Price Index (CPI) data (inflation) for the month of May. Across the board, the average price of goods is up 8.6% from May of last year. In short, according to Moody’s Analytics, American households now must pay an extra $460/month to buy the same goods they did a year ago.

Another startling statistic is sourced from the University of Michigan’s Consumer Sentiment Index, which tracks how consumers feel about the economy. The index fell to 50.2 points during the month of June, comparable to the drop recorded (51.7 May 1980) during the recession in the early 1980’s. Folks are feeling the effect of inflation and bracing for a recession under President Biden.

When government spending spirals out of control, you get inflation. Democrats turned their nose at economists and pumped trillions of new spending through the American Rescue Plan and as a result inflation began to rise. Now, we’re looking down the barrel of the Federal Reserve raising its federal funds rate to slow the economy which as a result could put us into a recession.

We know skyrocketing energy costs is a primary driver of the continuing rise in inflation. The United States wields the world’s largest economy and abundant natural resources. Yet, President Biden’s policies continue to choke American industry, creating investment uncertainty and stifling energy production when we most need it.

Finger pointing doesn’t cut it when folks are forced to reduce costs, work more, or dip into their savings to make ends meet. No more blaming Russia and no more begging the Middle East to bail us out. This country needs the President and Congress to get fully behind American energy producers and bring much needed relief to the pump quickly.