Explore how Biden attributes rising prices to 'Putin's price increase' as inflation hits a 40-year high in the US.
Recently, #the United States is facing the most serious inflation in 40 years#, #Biden made a new word to put the topic of soaring prices in the United States and put Putin on the hot search. In the face of the most serious inflation in the United States in 40 years, the White House and Biden have repeatedly "dumped" Pot" Putin attributed the soaring prices to the conflict between Russia and Ukraine, and Biden even coined a new word for this - "Putin's price increase". US President Biden: "What people don't know is that 70% of the price increase is caused by 'Putin's price increase'.
On April 12, the U.S. Department of Labor released data showing that the U.S. CPI increased by 8.5% year-on-year in March. In the case that Biden always believes that the inflation caused by Putin is the result of American opinion polls, only 6% of the American people believe that the inflation caused by the conflict between Russia and Ukraine. Transparency believes that such severe inflation is mainly attributable to the US government's economic policies and the epidemic.
At the same time, research by domestic and foreign scholars has shown that the main reason for this severe inflation is the domestic financial conditions and policies of the United States. The increase is mainly due to supply and demand factors such as energy, food prices and strong demand, followed by energy caused by the Russian-Ukrainian war. External factors such as rising food prices and supply chain chaos caused by China's epidemic containment measures. Whether it is the local people in the United States or other scholars' research, it shows that the US inflation has little to do with Russia and Ukraine this time, and Putin's "laying the gun" is the real hammer.
Regardless of where the causes of inflation are attributed, severe inflation in the superpowers will have a serious impact on global economic dynamics. The Fed has said it will raise rates by around 3.5% by the end of the year through multiple hikes of 50 basis points. In addition, the president of the European Central Bank also indicated that interest rates may be raised in July or later. From this, it can be predicted that the global industrial chain will be in a high and volatile situation, bulk commodities will face great challenges, and the energy and food industrial chain may become the "main battlefield" of inflation!
According to data monitoring, since January 1, 2022, 67% of commodities have risen, and only 33% have fallen. Due to the shortage of supply, the impact of the epidemic, the geopolitical situation and the promotion of international inflation, the commodities in some industrial chains are in a state of severe supply shortage. The crude oil industry chain and the electronics industry chain are both high-level operating areas. At present, the United States is experiencing the fifth epidemic and has raised interest rates several times, but many people still believe that the United States will continue to raise interest rates, and international events such as Russia and Ukraine have delayed the recovery of the global supply chain. Inflation and interest rate hike dynamics are unpredictable, coupled with the domestic policy of insuring prices and stabilizing supply, the basic raw materials for people's livelihood may remain at high prices for a long time.
