This post appears here courtesy of the John Locke Foundation
. The author of this post is Paige Terryberry
Christmas will be costly again this year as inflation eats away at your holiday hosting and shopping budget. Food, presents, and travel will all cost more than they did last year.
According to today's release from the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 0.1% in November. On an annual basis, prices increased 7.1%. Though this is the smallest annual increase since December 2021, most items are still more expensive. Core inflation which excludes food and energy, is up 6.0% on an annual basis.
7.1% inflation is not acceptable just because it is low by today's outrageous standards. This bout of inflation has persisted above 5% since June 2021. Core inflation has been 5% or higher since November 2021.
Though gasoline prices are down 2.0% over the month, they are still 10.1% higher than last year. Electricity too is down this month, but still 13.7% higher than last year.
Hard-working families are seeing their dollars stretched as they spend on Christmas decorations, presents, and meals for their family and friends.
Below find a table of estimated price increases that may affect your holiday budget whether you host, give presents, or travel to see friends and family:
Inflation is complex, but its source is pretty simple: deficit spending fueled by money printing. Newly created money from the federal reserve has resulted in too many dollars chasing too few goods in our economy.
Inflation is an implicit tax on American families, harming the poor most. Though prices have eased slightly from their four-decade high, Americans will pay more to celebrate with their family and friends this Christmas.
My Christmas wish list includes acknowledgment from our leaders of inflation's true causes as well as a promise to stop the spending that causes it.