President Joe Biden has lately sought to soothe fears that rising inflation could hurt the U.S. recovery and undermine his $4-trillion spending plans. This comes after U.S. inflation for the month of June accelerated to the fastest clip since 2008, as the economy continues to recover following the Covid-19 related lockdowns. According to the Labor Department, the consumer price index (CPI) climbed 5.4% Y/Y in the month of June. That’s about twice the average rate over the past decade.
Biden has something else to worry about: Rising oil prices.
The administration will feel a little jittery about high oil and gasoline prices because of the risk they pose to Democrats’ future political ambitions. It’s a well-known fact that gas prices have an outsized impact on the consumer psyche. Gas prices currently sit at $3.18 per gallon nationally, a full dollar higher than prices last year.
Indeed, this is not lost on Republicans, who have seized the moment and blame Biden for rising gas prices.