Tuesday's Inflation Rate for August Means Voters Will have 'The Economy' Top of Mind Going into November

August's 8.3% Inflation Rate means Biden can't escape the economy in November

WASHINGTON, D.C. (Texas Insider Report) — August's 8.3% inflation figure that was released just days ago means that the economy, prices at the grocery store and gas pump – as well as the future of our family pocketbooks – are going to remain top of mind for voters going into the Mid-Term Elections.

After its most recent peak of 9.1% in June, inflation measured by the Consumer Price Index ticked down to 8.3% for the 12 months ending in August, down slightly from July's 8.5% figure but still a far cry from the Federal Reserve's target of 2%.

Food, Shelter & Energy Prices led the way – meaning families across the nation will face rising prices each time they go out and make routine purchases.

Inflation stood at just 1.4% when now-President Joe Biden took office, and:
  • jumped to 5% by May 2021
  • 6% in October
  • 7% in December
  • and has been at or above 8% since March of this year.
This week's August report was met with a stock market selloff, another indication that the economy will be a big issue for voters in November. (See: "Stocks have worst day in years, as investors panic after hot inflation report.")
"Core inflation in August rose at double the rate of expectations, indicating inflation shows no signs of slowing down," said Alfredo Ortiz, president of conservative advocacy group Job Creators Network.

"Despite some moderation over the last year, the CPI remains near a 40-year high.

"Real wages continue to fall, and Americans are paying more for everything from groceries to gas since President Biden took office."

The Energy Index fell 5% on the month, but is still up a sky-high 23.8% for the 12 months ending in August.

Food prices increased more than 11% during that same period, according to the Bureau of Labor Statistics.

The Biden White House released a statement saying it will "take more time" to bring inflation down, citing the so-called "Inflation Reduction Act" as a sign of action the administration has taken to help.

The act, however, will not reduce inflation anytime soon – a fact voters appear to realize.
  The Federal Reserve Bank has also been forced to aggressively hike interest rates to fight further increases in inflation, and is expected to increase rates again later this month – as well as once again before the end of 2022. 
Currently, Mr. Biden is more than 20% underwater on "the Economy" with a 58.6% "Disapproval Rating" in the latest RealClearPolitics Polling Average – which is worse than his overall 10% "job approval" deficit.

And those rating also come as Biden mixes in how he's fighting inflation into speeches. along with his now-stern warnings about "Ultra-MAGA Republicans."

Republicans are ready to take the issue of the economy to the campaign trail during the final 50-odd days remaining in the election, especially since Biden's other recent actions – including the $1.9 trillion American Rescue Plan and his much-questioned Student Loan Forgiveness Plan – are widely seen as helping fuel inflation.

Similarly, real wages are down 2.8% year over year, although they have increased slightly in each of the last two months.