The United States Federal Reserve has raised interest rates to stabilize prices and add jobs, but this wouldn’t work in the near-term. In the meantime, Joe Biden has widely been accused for the record inflation rate and lost approval reaching to a new low.
The American household basket has shrunk, as the war in Ukraine and a hike in natural gas prices and even fertilizers has led the prices of various goods and items in the US to increase. Consumer price index shows that the price of food has hit the highest numbers since 1970.
The Joe Biden administration has been blamed by the Republicans for the inflation, but Biden shifts the blame on the Russian President Vladimir Putin and his invasion of Ukraine. However, polls show that Biden’s argument has few supporters among the American people.
Republicans say that Biden’s 1.9 trillion dollar relief plan has cause the record inflation, but Democrats echo Biden’s arguments blaming the COVID-19 pandemic and disturbances in oil and wheat markets caused by the war in Ukraine.
A new Harvard CAPS-Harris Poll survey published in the Hill showed that inflation is the first concern for American voters. AAA data indicate that gas prices have been double since Biden took office in early 2021, lifting the US 51 rows up in the global gas price ranking table.
Energy carriers have seen 34 percent increase compared to the last year in the US, with 48 percent increase for gas, 106 percent for diesel, 12 percent for electricity and 30 percent for natural gas.
Housing is another important factor in the US inflation rate, as it accounts for one third of US consumer price index. Housing index shows 5.4 percent increase against the last year, with average renting price reaching 4,000 dollars that shows 25 percent rise.
In the meantime, the increase in interest rates has caused the house loans interest to raise, reducing the demand for house which would could lead to a recession in housing market.
All this has shrunk Biden’s approval to the new low of 33 percent, signaling a critical situation for his popularity. Biden has acknowledged in his speech in Latin American leaders summit that the inflation would last for a while, blaming the war in Ukraine and the private corporations’ greed for the inflation. He has said that the US government would intervene to prevent private corporations from manipulating the market.