Tuesday marks one year since President Biden told the American public that inflation and price increases seen in the beginning months of his administration would only be "temporary."
Biden made the remarks in a July 19, 2021 speech regarding the economy, leading off with predictions that were made leading up to his presidency, which have proven to be in many ways true.
"Before I took office, there was a lot of folks out there — a lot of folks out there making some pretty bold predictions about how things would turn out. You might remember some of the predictions. That if I became President, we’d, quote, 'see a depression the likes of which we’ve never seen,'" said Biden.
Biden said that the economy had come "roaring back" during the first six months of his presidency and in the months following the worst of the pandemic.
He noted though that wile the economy’s on the rise, prices would rise as well, albeit temporarily.
"We also know that as our economy has come roaring back, we’ve seen some price increases. Some folks have raised worries that this could be a sign of persistent inflation. But that’s not our view. Our experts believe and the data shows that most of the price increases we’ve seen are — were expected and expected to be temporary," said Biden.
That inflation has proven to be persistent, with inflation rising another 1.3 percent in June compared to May.
Inflation is now at an over 40-year high, with the price of goods and services rising 9.1 percent compared to last June, a jump not seen since the period ending in November of 1981.
Inflation has been consistently rising since the beginning of the Biden administration, with the prices for food and energy bearing a large portion of the load.
In the 12 months ending in June, food prices have gone up 10.4 percent. With prices going up at the grocery store, many Americans have had to reconfigure their grocery store lists.
Energy prices are up 41.6 percent compared to June of last year, with gasoline skyrocketing by 59.9 percent. Biden and his administration has repeatedly blamed this huge increase in prices on Russian President Vladimir Putin, calling it "Putin’s Price Hike," despite prices being on the rise throughout Biden tenure.
According to the American Automobile Association, gasoline prices hit a historic record of $5.016 per gallon on June 14, with prices slightly softening since then, with a national average of $4.495 per gallon on Tuesday.
One year ago when Biden spoke, prices for gasoline were at $3.170 per gallon.
With prices increasing nearly across the board, experts are beginning to predict the possibility of a recession in coming years.
Bloomberg analysts have predicted that the chance of a recession this year is one in four, but raised the probability to three in four for 2023, saying a recession will be "hard to avoid" then.
In an attempt to combat inflation the Federal Reserve hiked its interest rate by .75 basis points in June, the highest increase seen since 1994.
Treasury Secretary Janet Yellen has warned that inflation is likely to remain at "very uncomfortably high" levels for the next year.
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