Inflation hits new high, small businesses worried | national

(The Center Square) – Inflation hit its fastest rate in nearly 40 years in 2021, according to new federal data released for December.

The Department of Labor’s Bureau of Labor Statistics released new inflation The figures Wednesday showing that the prices of goods and services have skyrocketed at the fastest rate since 1982.

“The All Items Index increased 7.0% for the 12 months ending December, the largest 12 month increase since the period ending June 1982,” the BLS said. change from period ending February 1991. The energy index increased 29.3 percent over the last year, and the food index increased 6.3 percent.

The increase for the year continued with a 0.6% increase in the consumer price index in December, meaning daily purchases are becoming more and more expensive for Americans.

“This was the sixth time in the past 9 months that it has increased by at least 0.5%,” BLS said. “Along with indexes for shelters and used cars and trucks, indexes for furnishings and household operations, clothing, new vehicles and medical care all increased in December. As in November, auto and leisure insurance indexes were among the few to retreat during the month.

The National Federation of Independent Businesses published a report this week, showing that this spike in inflation is one of the biggest concerns for small businesses.

The report found that 22% of small business owners say inflation is the biggest problem for running their business, a 20% increase since the start of 2021. This level of concern is the highest since 1981, according to the NFIB.

“Small businesses unfortunately saw a disappointing employment report in December as staffing issues continued to impact their ability to be fully productive,” said Bill Dunkelberg, chief economist of the NFIB. “Inflation is at its highest level since the 1980s and has a huge impact on the ability of owners to run their businesses. “

The new data comes after Federal Reserve Chairman Jerome Powell told Congress on Tuesday that high inflation is “a serious threat” to the job market.

As President Powell said yesterday, inflation is a serious threat to workers leaving the sidelines and re-entering the workforce – yet the Biden administration ignored it, denied it and sacked it. now the responsibility for their own incompetence, “House Ways and That means Republican Leader Kevin Brady said.

Meanwhile, the latest data on the Producer Price Index, another key indicator of inflation, has also skyrocketed. That index rose 0.8% in November alone and has seen a 9.6% increase in the past year, the highest peak since the federal government started tracking data in 2010.

President Joe Biden has been on fire for months for rising inflation, even as he asked for several trillions of dollars more in federal spending. Opponents of these spending bills have raised concerns about inflation, as the federal debt is partially offset by printing money.

Biden argued his plan would reduce inflation, although this has been disputed.

“This trend is not ‘transient’, and everything is happening under the control of a single party of Democrats,” said Republican leader Kevin McCarthy.