President Biden blames a war that goes more than 4,000 miles away for the rapid rise in gas prices at home.
Speaking to reporters on Saturday, Biden said Russia’s war in Ukraine was to blame for the rising cost of oil and gas prices.
“It is outrageous what is causing the war in Ukraine,” Biden said.
“We are trying hard to make sure we can significantly increase the amount of barrels of oil that are being pumped out of the reserve we have,” he added.
The average price of a gallon of gasoline in the United States has exceeded $ 5 for the first time since inflation hit a 41-year high of 8.6 percent in May.
On Saturday, the national average price rose 19 cents last week and has risen $ 1.93 from this time last year, according to the AAA gas price index.
The president then emphasized the government’s decision to take advantage of US oil reserves.
President Biden blames a war that goes more than 4,000 miles away for the rapid rise in gas prices at home.
“It is outrageous what is causing the war in Ukraine,” Biden said. “We are trying very hard to make sure we can significantly increase the amount of barrels of oil being expelled from the reserve we have.”
Average gas prices rose 19 cents last week to $ 1.93 a year ago, according to the AAA Gas Price Index, as domestic prices reached $ 5.
Biden faces a growing political backlash as high prices raise the pain of American households, who are seeing daily records at the gas station.
Unlike his predecessor Donald Trump, who relentlessly attacked the Fed and its president Jerome Powell, Biden has publicly supported the central bank’s efforts.
Biden, who blames Putin’s “price hike” for accelerating inflation, said Washington “needs to do more, and quickly, to bring down prices here in the United States.”
Hoping to avoid a devastating setback in the November election that could return control of the legislature to opposition Republicans, Biden has urged Congress to pass legislation to reduce the costs of key products such as drugs and services such as shipping to soften the blow of American consumers.
Biden faces a growing political backlash as high prices raise the pain of American households, who are seeing daily records at the gas station.
Overall, world oil prices are rising, exacerbated by sanctions against Russia, a major oil producer, over its war against Ukraine. The average price of a gas in the UK on Thursday rose $ 10.16 per gallon.
In addition, there are limits to refining capacity in the U.S. because some refineries closed during the pandemic.
The combined result is to see the cost of filling rise, draining money from Americans facing the highest inflation rate since 1981.
In terms of states, California remains the most expensive gasoline, with gold prices averaging $ 6.43 per gallon, while Mississippi is the lowest at $ 4.52 per gallon. .
A total of 21 states, as well as Washington DC, now have an average of more than $ 5 a gallon, and more will join their ranks in the coming days as Americans also suffer from the inflation rate. highest in 40 years.
Gas Pump Shows Fuel Price at McLean Gas Station, Virginia Saturday
A total of 21 states, as well as Washington DC, now have an average of more than $ 5 per gallon. In the photo, a Michigan gas station charges $ 5.29 per gallon
Press officer Olexii Mischenko shows a destroyed government administration building in Bashtanka, Mykolaiv region, as Russia continues its attack on Ukraine
New data show that annual inflation in the U.S. rose to 8.6 percent last month, the largest increase since December 1981.
While this is the first time the average price has broken the $ 5 barrier, it is still not a record when inflation is taken into account. Gasoline hit a high of $ 4.11 a gallon in July 2008, which would be about $ 5.40 a gallon today.
The latest rise in gas prices comes as demand rises in June, as Americans tend to drive more after Memorial Day in late May.
On Friday, President Joe Biden finally acknowledged that inflation remains stubbornly high, after the key price measure exceeded expectations, shattering any hope that consumer price hikes would have peaked.
The Labor Department’s report on Friday showed that the consumer price index rose 1 percent in May from the previous month, with a 12-month increase of 8.6 percent, surpassing the recent high observed in March and reaching its highest level in over 40 years.
Biden said earlier that inflation had peaked since December and tried to give a promising note in recent months, but his reaction to the May figure was darker, although he still blamed Vladimir Putin and Republicans in Congress.
Inflation in May was higher than economists expected and exceeded the recent high of 8.5 percent set in March.
Inflation has become a key threat to Biden and the Democrats in Congress in the middle of the legislature, and on Friday Biden is scheduled to speak at the Port of Los Angeles to highlight his efforts to alleviate supply chain chaos.
Biden’s full statement on the May inflation rate
“Today’s report highlights why I have made fighting inflation my top economic priority. While it’s good to see the moderation of critical ‘underlying’ inflation, it’s not going down as sharply and as quickly as we should. Putin’s price hike affected May here and around the world: high gasoline prices at the pump, energy and food prices accounted for about half of monthly price increases , and gasoline prices have risen by $ 2 a gallon in many places from Russia, troops have begun to threaten Ukraine, and while we continue to work to defend freedom in Ukraine, we must do more — and quickly — to lower prices here in the United States.
“My administration will continue to do everything possible to reduce prices for the American people. Congress must also act urgently. I ask Congress to pass a bill to reduce shipping costs this month and that Take it to my desk so we can lower the price of goods, and I’m asking Congress to pass legislation to cut costs for families, such as energy bills and prescription drugs. more under my control as president than at any time in history, but if Congress passed a tax reform to get Americans and the richest big corporations to pay their fair share, we could further reduce this inflationary pressure. These are the most important things Congress can do to help families now and complement the Federal Reserve ‘s efforts to reduce inflation.
“Bomb prices are a big part of inflation, and the war in Ukraine is one of the main causes. The United States is on track to produce a record amount of oil next year, and I’m working with But it is also important that the country’s oil, gas and refining industries do not use the challenge created by the Ukrainian war as a reason to make things worse for families with a dam. Excessive profit or rising prices.We all have work to do to lower inflation.What will not help is the plan of some Republicans in Congress to raise taxes on the middle class and working families.It would be a step in the wrong direction , and I strongly oppose it. “
New figures released on Friday suggested the Federal Reserve could continue its rapid rise in interest rates to fight inflation, and markets reacted quickly, with the Dow losing more than 700 points in early operations.
The annual rise, driven by rising food and energy prices, was more intense than economists expected and also marked the strongest signal so far that inflation has not yet peaked.
Inflation has become a key threat to Biden and congressional Democrats in the middle of the legislature, and on Friday Biden is scheduled to speak at the Port of Los Angeles to highlight his efforts to alleviate the supply chain chaos that contributed to rising prices.
Polls show that Americans see high inflation as the nation’s main problem, and most disapprove of Biden’s handling of the economy.
In his statement on Friday, Biden continued to blame Russia and Republicans for high inflation, calling the rising food and energy costs “Putin’s rising prices.”
He also called on Congress to pass “a tax reform to get the richest Americans and big corporations to pay their fair share,” saying it would reduce inflationary pressure by reducing the federal deficit.
Republicans in Congress are discussing Democrats on the issue ahead of this fall’s midterm elections.
House Minority Leader Kevin McCarthy responded to Friday’s inflation data by tweeting: “I call on President Pelosi and House Democrats to hold a hearing at prime time on inflation outside of control that their policies have created “.
Republican National Committee Chair Ronna McDaniel blamed the rise in inflation on the $ 1.9 trillion Democrat stimulus bill a year ago, noting that inflation has surpassed wages every month. Since then.
“Inflation has risen and real wages have fallen. In Joe Biden’s America, everyday commodities are priced like luxury goods and Americans are tired of paying the price for Biden’s failed agenda. McDaniel said in a statement. “Families struggling to put food on the table, fill their cars and find baby formula deserve answers, but Biden doesn’t care.”
Even Jason Furman, a senior economic adviser to the Obama administration, admitted that the U.S. economy “is not in a sustainable place right now” because of inflation that exceeds wages.
“Right now, we’re in a bad situation where we have a lot more price inflation than wage inflation,” he told CNBC on Friday.
“If you repress the economy, you will slow down the growth of prices and slow down the growth of wages. I have no obvious answer for which of these slows down more than the other.
Excluding volatile food and energy prices, so-called core inflation rose 0.6 percent in May, at the same rate as April, with an annual gain of 6 percent. This figure was also higher than …