Have you gone out to eat lately? Shocked at the rise in price? Even simple things like a glass of iced tea can cost you almost $5 in some restaurants. And forget about buying a steak dinner! You’ll have to take out a loan.
The rise in consumer prices is a direct result of the rising costs businesses are incurring, thanks to inflation. Before inflation hits your wallet, companies have to struggle with rapidly-rising production costs.
Everything from food, construction supplies, to paper goods are getting more expensive. And, this latest report reveals inflation is continuing to rise at an unsustainable rate.
Inflation for businesses remained elevated as the Producer Price Index (PPI) rose 10.8% from May 2021 to May 2022, a Tuesday report from the U.S. Bureau of Labor Statistics revealed.
The index’s rise was driven largely by energy costs soaring by 5% during the month of May and transportation expenses increasing nearly 3% — a phenomenon that occurred as prices at the pump continually reach new highs and surpass a national average of $5 per gallon.
“Businesses are being forced to raise prices, or succumb to shrinkflation, as transportation of goods goes up,” Job Creators Network CEO Alfredo Ortiz said in a statement provided to The Daily Wire. “All of this leads to Americans becoming poorer than ever.” [Source: Daily Wire]
The triple whammy of inflation (thanks to Biden’s policies), the crippled supply chain (thanks to Biden’s failures), and rising gas prices (thanks to Biden’s direct involvement) are making it so businesses are struggling to keep the lights on.
The cost of procuring supplies and materials rose to 10.8% last month. Over the last year, that number has continued to rise, reaching double-digit territory.
Biden claims the economy is doing great. Not, really. Rising costs force companies to increase their prices on consumers. Which, of course, forces consumers to stop spending. A drop in spending lowers businesses’ profits, which leads to shut down businesses and layoffs.
What is that called? Oh, right, a recession.
Biden can’t pretend like the economy is doing so great, when we are teetering on the edge of a recession. His reckless policies put America in this position. And nobody within his administration is willing to change course.
Sadly, this trend will only continue through the summer and into the fall holiday season. Families will be deprived of much-needed summer trips. And Christmas will be as bleak as last year, with some families unable to provide gifts.
Unless something drastic changes in Congress, this will be the trend for years from now. Until America is no different from a third-world country.
Author: Mac Davis