Research firm Strategas released data showing that its own inflation gauge grew at a rate of 3.8% year over year. The “common man's CPI” measure focuses on items that people must buy regularly: food, energy, housing, clothing, utilities and insurance.
This marks the ninth consecutive month in which the common man's CPI has surpassed the headline inflation figure. Throughout President Biden's term, the index has exceeded the headline inflation figure in 34 of 40 months.
Strategas suggests this persistent trend may pose a challenge for President Biden as election issues come to the fore.
“President Biden may be running out of time to change voters' perceptions of things,” the firm said.
In a related note, BCA Research acknowledged the accumulated difficulties facing the Biden administration.
They indicated that a change in their electoral prospects could be considered during the summer if current trends continue.
BCA Research's quantitative models still show a slight preference for Democrats in the White House and Republicans in the Senate, consistent with its qualitative analysis.
They also noted that while the economy shows no signs of an imminent recession, vulnerabilities are beginning to appear due to sustained high interest rates.
Additionally, foreign policy setbacks represent another potential risk for President Biden.
“The close US election should lead to increased political risk and political uncertainty, which should weigh on investor confidence in the middle of the year,” BCA said.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=();t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)(0);s.parentNode.insertBefore(t,s)}(window, document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);
