STATESIDE STORIES: U.S. Congress to vote on Biden’s 3.5 Trillion Dollar Budget amidst Inflation

On a monthly basis, consumer prices advanced 0.4% above forecasts of 0.3% with the indexes for
food and shelter constituting more than half of the monthly increases. US President Joe
Biden’s “Build Back Better” 3.5 Trillion Dollar Budget plan will be voted on by the
full Congress at the end of the month. Most critics of the spending package
say that it will only worsen the inflation plaguing Americans now.

by Mary Foran

Inflation. That means that the cost of goods and services to the consumer rises.

The annual inflation rate in the US edged up to a 13-year high of 5.4% in September 2021 from 5.3% in August and above market expectations of 5.3%.

The shrinking dollar

The main upward pressure came from the cost of shelter (3.2% vs. 2.8% in August), food (4.6% vs. 3.7%, the highest since December of 2011), food at home (4.5% vs. 3%); new vehicles (8.7% vs. 7.6%); and energy ( a whopping 24.8% vs. 25%).

On the other hand, prices eased for used cars and trucks (24.4% vs. 31.9%), transportation services (4.4% vs.4.6%), apparel(3.4% vs. 4.2%) and medical care services (0.9% vs. 1%).

On a monthly basis, consumer prices advanced 0.4% above forecasts of 0.3% with the indexes for food and shelter constituting more than half of the monthly increases.

US President Joe Biden’s “Build Back Better” 3.5 Trillion Dollar Budget plan is already in the works with the House of Representatives passage, and will be voted on by the full Congress at the end of the month.

It includes social programs as well as some infrastructure elements.

Most critics of the spending package say that it will only worsen the inflation plaguing Americans now. The price of gasoline is an example, with $4.50 the average price across the US and up to $8.00 a gallon in California.

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Images
Featured image/White House Facebook
Shrinking dollar/frankieleon, CC BY2.0