President Biden‘s $4 trillion tax credit and spending proposals encountered a new political obstacle on Wednesday: The threat of surging inflation, after consumer prices in April saw the biggest increase in decades.
The Labor Department report that U.S. consumer prices for goods and services surged 0.8% in April, the largest monthly increase in more than a decade and the fastest year-over-year jump since 2008. Excluding the volatile food and energy data, core inflation rose 0.9% in April and 3% over the past 12 months.
“There’s so much money out there in the economy that the demand is high, and it’s outpacing supply and it’s starting to push prices up,” Sen. John Thune, R-S.D., told Bloomberg on Wednesday. “We need to be a little more cautious and restrained.”