Biden Refers to Inflation As ‘Putin’s Tax’ on Food and Gas
President Joe Biden is continuing to blame inflation on Russian President Vladimir Putin more than three months into Russia’s invasion of Ukraine. During an event on Friday, Biden addressed the latest inflation report…
President Joe Biden is continuing to blame Inflation on Russian President Vladimir Putin more than three months into Russia’s invasion of Ukraine.
During an event on Friday, Biden addressed the latest Inflation report as he said, “I understand Americans are anxious. And they’re anxious for good reason.”
“I was raised in a household when the price of gasoline rose precipitously it was the discussion at the table. It made a difference,” he continued.
Finally, Biden said, “We’ve never seen anything like Putin’s tax on both food and gas.”
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At a separate point, Biden said, “Putin’s price hike is hitting America hard. Gas prices at the pump, energy and food prices account for half of the monthly price increases since May.”
“Inflation outside of energy and food, what the economists call core Inflation, moderated the last two months. Not enough, but it moderated,” he added.
From the outset of Russia’s war on Ukraine, Biden officials have blamed the “Putin price hike” for the spikes Americans were seeing in gas and food prices — even though Inflation had hit a 40-year-high in the months leading up to the invasion.
Biden’s comments come after the latest data from the Bureau of Labor Statistics showed that Inflation accelerated in May.
The consumer price index rose 8.6% in May compared to the same month last year, marking the fastest pace of price increases since Dec. 1981.
Energy prices rose 34.6% annually while grocery prices rose 11.9% — which was the largest spike since 1979.
Chris Rupkey, chief economist at the research firm FWDBONDS LLC, said in an analyst note, “Whatever Washington has done to try to fix the cost of living crisis in America, it isn’t working.”
“This isn’t just Russia and Ukraine anymore,” he added.
Sarah House, a senior economist at Wells Fargo Securities, told The Wall Street Journal, “Inflationary pressures were seen nearly everywhere.”
“We suspect that the formidable momentum in Inflation could push the headline rate for CPI close to 9% as early as next month,” she added.