Yes, inflation is at a 40-year high, and rates have been climbing throughout Biden’s time in office

Prices are increasing for everything from gas at the pump to the chicken at the grocery store. 

That means the reason driving those increases – inflation – has become a major talking point, especially for politicians. And especially for Republicans, who want to pin the blame for rising prices on Democrats and President Joe Biden.

U.S. Rep. Mike Gallagher, R-Green Bay, weighed in on the matter, and framed the increases around Biden’s time in office. 

"Inflation has gone up every month of the Biden presidency and just hit another 40-year high," he said in an April 12, 2022 news release. 

Is he right?

When asked for more backup for the claim, Gallagher’s office shared a link to an April 10, 2022 article from NBC News, which noted that inflation has risen every month since Biden took office – and that the inflation rate is the highest it’s been in 40 years. 

His office also shared a link to data from the Bureau of Labor Statistics, showing the Consumer Price Index (which serves as a measure of inflation) for the last 20 years. The graph shows that the index started climbing in April 2020, with a steep increase in January of 2021. 

That, of course, is when Biden took office.

Before we dig deeper, it’s important to note two things. 

First, economists and experts say inflation is driven by a wide variety of factors, including a surge in demand for services and goods, and consumers who are willing to pay more for them. 

In this case, it includes supply chain issues prompted by COVID-related problems such as a drop in the production of items such as cars, couches and even gas, according to a Jan. 10, 2022 New York Times article. But inflation can also be driven by consumers spending more money, as people are doing following the stimulus checks received during the coronavirus pandemic. 

"The indefatigable shopping is helping to keep price increases brisk," the NYT article said. 

Second, inflation has been creeping up for quite a long time, and continued that trend under former President Donald Trump, just as it has under Biden. As an April 20, 2022 factcheck noted, inflation did increase after Biden took office, especially following the passage of the American Rescue Plan, which included $1,400 payments to every American, $360 billion for state and local governments and $242 billion in expanded unemployment benefits, among other funding. 

Jim Johannes, an emeritus professor of banking and finance and the director of the Puelicher Center for Banking Education at the University of Wisconsin-Madison, said looking at charts from the Federal Reserve Economic Data (FRED) website shows that the inflation rate is indeed at its highest point in 40 years, sitting at about 8.5% as of March. 

That is, prices in March 2022 were 8.5% higher than in March 2021. 

The last time the rate was that high was in 1981. 

As far as the inflation rate rising every month of Biden’s presidency, Gallagher’s claim deserves an asterisk on that point as well.  

Here is the breakdown:

February 2021: 1.7%

March 2021: 2.7%

April 2021: 4.2%

May 2021: 4.9%

June 2021: 5.3%

July 2021: 5.3%

August 2021: 5.2%

September 2021: 5.4%

Featured Fact-check

Robin Vos

stated on November 6, 2024 in News conference

“Every single county in America, every single county, Kamala Harris did worse than Joe Biden did.”

October 2021: 6.2%

November 2021: 6.8%

December 2021: 7.1%

January 2022: 7.5%

February 2022: 7.9%

March 2022: 8.5%

According to FRED data, there was a slight plateau between June 2021 and September 2021, but other than that, inflation has indeed increased every month since Biden took office. 

"I think the factual statement as in the inflation rate going up every month of the Biden administration, the answer would be, with a slight exception of a few months in 2021, the answer is yes," Johannes said. 

In a news release, Gallagher claimed: "Inflation has gone up every month of the Biden presidency and just hit another 40-year high." 

Looking at economic data, it’s true that the rate of inflation is the highest it’s been since the 1980s. And inflation has, indeed, been on the rise under Biden – though Gallagher glosses over a slight plateau in mid-2021. 

What’s more, the increase – which, to be sure, has gotten much steeper – began before Biden was sworn in, under Trump.

That leaves us with a claim that is accurate, but needs clarification or additional information.

That’s what we call Mostly True.