US President Joe Biden forced to defend his economic plan after America records its highest inflation in nearly 40 years

US President Joe Biden had some explaining to do after America’s November figures on inflation showed it was up 6.8 per cent compared to last year.

Record-high inflation in the United States has forced Americans into a punishing “apocalyptic” standard of living as rates skyrocket to early 1980s levels.

Startling figures revealed inflation jumped 6.8 per cent in November compared to last year – a number compounded by a dramatic reduction in the capacity of households to afford basic necessities like fuel and food.

The annual inflation rate in November was the highest recorded since June 1982, almost 40 years ago, and lengths ahead of October’s 6.2 per cent.

Additionally, the consumer price index (CPI) increased by 0.8 per cent in November after topping 0.9 per cent in October, the US Labor Department said this week.

The country’s labour shortage had forced wages higher, increasing costs for businesses and causing chaos in the supply chain, which suffered major disruptions throughout the pandemic.

It’s feared the high inflation could continue well into 2022, given the economy had yet to show any real sign of stabilising.

US President Joe Biden defended his Build Back Better plan after America recorded its highest inflation in almost 40 years. Picture: Saul Loeb/AFP

A senior economist in the US predicted it could actually get far worse before any improvement could be observed.

“With supply shortages likely to stick around until next year and service-sector prices trending higher, inflation is going to get worse before it gets better,” said Sam Bullard, a senior economist at Wells Fargo in North Carolina, said.

However, US President Joe Biden has downplayed the implications of high inflation, arguing it had likely reached its peak and would soon begin trending downward.

He argued in a statement released following the November report that “price and cost increase are slowing, although not as quickly as we’d like”.

“Half of the price increases in this report are in cars and energy costs from November. Since then, we have seen significant energy price reductions,” Mr Biden said.

Responding to a question at a virtual democracy summit held at the White House, he claimed the record-high inflation was merely a “bump in the road” for the United States.

President Biden claimed inflation had reached its peak and would soon come down. Picture: Saul Loeb/AFP

While he acknowledged high inflation had negatively impacted families, particularly at the grocery store and petrol station, he claimed the figure had reached its peak and would soon be coming down.

“It matters when you’re paying more for gas, although in some states, we’ve dropped the price down below three bucks a gallon,” he said, according to Daily Mail.

“But the point is, it’s not gone down quickly enough – but I think it will … I think it’s the peak of the crisis.”

Grocery prices were up 6.2 per cent in November compared to last year, including steak which climbed 25.6 per cent, bread four per cent, and fresh fruit 5.8 per cent.

Meanwhile, unleaded petrol was up 60.1 per cent compared to 2020, new cars and trucks were up 11.1 per cent, and used cars climbed 31.4 per cent.

The president has remained confident in his Build Back Better plan, which he claimed would lower how much families pay for “health care, prescription drugs, child care, and more”.

Eventually, he said independent economists had predicted his plan had the capacity to save “a typical family of four $7,400 (A$10,300) every year — while easing long-run inflationary pressures on our economy”.

That’s what 200.00 looks like😭😭😭 pic.twitter.com/zhtz1cnj1B

— ❤️‍🔥TIⓂ️Ⓜ️@Y!!❤️‍🔥 (@thamemeweaver) November 6, 2021

Every shopping trip for the past 18 months has had a post-apocalyptic vibe. Shortages, wait times, unknown brands pulled out of the woodwork to have something to offer. Now add 50% inflation (the 4% official value is not right) https://t.co/uZRWsY7vF4

— Xi Variant Renna (@RennaW) November 16, 2021

If society is going to devolve into post-apocalyptic inflation, politics, social justice, & warring tribes

Can we at least have the fights, metal music, denim and leather outfits, & clan alliances?

— Ronin Writer | Road of Conviction™⛩ (@MetalShogun) November 15, 2021

He went further to say that as kickbacks of his plan begin to take effect, the US economic growth was stronger “than virtually any other nation”.

“Yesterday we got more proof that our jobs recovery is on track and setting records – with unemployment insurance claims falling to their lowest level in 50 years and nearly six million Americans back to work,” his response statement to November’s inflation read.

“Economic growth is stronger here than virtually any other nation. Americans have more money in their pockets than this time last year – $100 (A$139) more each month than last year – even after accounting for price increases.

“But we have to get prices and costs down before consumers will feel confident in that recovery. That is a top goal of my administration.”

Critics have seized the opportunity to blame Mr Biden for the country’s inflation explosion, with Republicans widely criticising it as a result of his sweeping spending agenda.

Inflation of household goods however, including food, was at its highest level a decade before Biden entered the White House.