(JustPatriots.com)- The Federal Reserve’s “core prices,” a measure of prices that exclude volatile food and energy costs, have increased by an incredible 5.2% in the year ending January, according to new data released on Friday morning.
The key measure analyzes annual inflation and is used by the Federal Reserve to determine the rate at which prices are increasing. The data from the consumption expenditures price index show inflation running at the hottest pace in almost forty years. It comes as businesses across the country struggle to stock their shelves and find enough employees, and as fuel costs are rapidly rising at the same time.
Data also shows how inflation has been above the central bank’s 2% target for 10 consecutive months.
What does that mean? Well, it means that the American people are paying more for home goods, food, and everything else – and that prices keep going up. It also means that prices may not come back down.
In January, the price of food and energy increased by 6.1% over the last year, which is the most rapid and significant increase in prices since February of 1982.
Core prices increased by 0.5% between December and January.
Much of the inflation spike was caused by rising energy costs, however, which have increased by 25.9% over the last year. And with the Ukraine-Russia war in full swing, those energy prices are likely to continue increasing – not to mention the cost of wheat, given that both Russia and Ukraine are among the biggest exporters of wheat o the planet.
With millions of Americans struggling to pay the bills, inflation is likely to play a huge part in how people vote in this year’s midterm elections…and it could see the Democrats taking a beating.