Inflation: McCarthy says Americans 'can't afford Democrat one-party rule'

EXCLUSIVE: House Minority Leader Kevin McCarthy on Tuesday, reacting to record-high inflation, said Americans "can’t afford Democrat one-party rule," urging voters to "entrust House Republicans with the majority" in November so that they can focus on "pro-growth policies."

Inflation accelerated in March to a new four-decade high as Russia’s war on Ukraine fueled rapid price gains for oil and gas that wiped out the benefits of rising wages for most Americans.

INFLATION SURGES 8.5% IN MARCH, HITTING A NEW 40-YEAR HIGH

The consumer price index rose 8.5% in March from a year ago, according to a new Labor Department report released Tuesday, marking the fastest increase since January 1982, when inflation hit 8.4%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 1.2% in the one-month period from January. 

Economists expected the index to show that prices surged 8.4% in March from the previous year and 1.2% on a monthly basis.

After the numbers were released, McCarthy, R-Calif., criticized the Biden administration and Democrats, who hold the majority in both chambers of Congress.

"Another month, another loss in Americans’ real buying power," McCarthy told Fox News. "Inflation not only continues to rage under President Biden, prices are accelerating faster than any time in more than 40 years, sucking up households’ paychecks and savings like a black hole."

He added: "Americans can’t afford Democrat one-party rule."

McCarthy told Fox News, though, that "if Americans entrust House Republicans with the majority, we will focus on stopping the mistakes that risk making inflation worse and return to the pro-growth policies that gave us the strongest economy in generations, so that Americans’ paychecks get bigger and their dollars go further."

According to the Bureau of Labor Statistics, Americans are paying 32% more for energy than last year, and 48% more for gasoline.

Biden, last month, announced a ban on all imports of Russian oil, gas and energy to the United States, targeting the "main artery" of Russia's economy amid Russian President Vladimir Putin’s war on Ukraine, but warned that the ban would cost American families.

BIDEN TO ANNOUNCE AUTHORIZATION OF E15 GASOLINE IN AN EFFORT TO INCREASE US FUEL SUPPLY, REDUCE GAS PRICES

Russian oil exports account for about one-third of Europe’s oil imports, however, Russian exports are just under 10% of U.S. overall imports.

The White House, though, is blaming Putin for the record-high gas prices in the U.S., even coining the surge as the "#PutinPriceHike" and vowing that Biden will do everything he can to shield Americans from "pain at the pump."

Biden, on Tuesday, is set to announce that the Environmental Protection Agency will allow E15 gasoline – gasoline that uses a 15% ethanol blend – to be sold in the United States this summer in an effort to expand Americans’ access to affordable fuel supply amid the surge in gas prices across the nation.

The waiver is set to help increase fuel supplies, give consumers more choice to get lower prices, and offer savings to American families, the White House said.

According to the White House, at current prices, E15 can save a family 10 cents per gallon of gas on average.

A senior administration official said the president's announcement would build on progress of increasing fuel supplies and offering consumers "more choices and flexibility and reduced gas prices." 

But for common grocery items, Americans have seen meat prices increase 14.8%, fish 10.9%, eggs 11.2%, milk 13.3%, fruits and vegetables 8.1%, and coffee 11.2% since last year.

Rising inflation is eating away at strong wage gains that American workers have seen in recent months: Real average hourly earnings decreased 0.8% in March from the previous month, as the 1.2% inflation increase eroded the 0.4% total wage gain, according to the Labor Department. On an annual basis, real earnings fell 2.7% in March.

The inflation spike has been bad news for President Biden, who has seen his approval rating tumble as consumer prices rise. The White House has blamed the price spike on supply-chain bottlenecks and other pandemic-induced disruptions in the economy, while Republicans have pinned it on the president's massive spending agenda and his energy policies targeting the oil and gas industries.

The data could also have major implications for the Federal Reserve, which has taken a more hawkish approach to fighting inflation in recent months: Policymakers raised rates by a 0.25 percentage point in March, and have since signaled support for a faster, half-point increase at their May meeting. 

Meanwhile, Republicans are ramping up their efforts ahead of November's midterm elections, with the hopes of taking back the majority in the House of Representatives, the Senate, or both. 

REPUBLICANS VIEW MIDTERMS AS AN 'OPPORTUNITY' TO 'CHANGE THE COURSE' OF AMERICA, MCCARTHY SAYS

During an interview on the sidelines of the House GOP Issues Conference in Florida last month, McCarthy told Fox News that Republicans are working to "narrow solutions" to major issues like inflation, American energy independence, crime and securing the southern border.

"Our party is unified based on these Democrat policies that have created so much damage to America," McCarthy said, making a pitch to voters.

"We’re going to tell them to join with us. It’s not our time – it is our time as Americans," McCarthy said.

"If they are concerned about rising prices, we have a plan to stop that. If they are concerned about gasoline, we can make America energy independent. If they’re concerned about their border not being secured, we can secure it. If they are concerned about parents not having a say in their kids’ education, we believe they have a right to that. If they’re concerned about the weakness from the White House, we believe in peace through strength," McCarthy continued.

He added: "We believe this is an opportunity to change the course of where America is today and make it stronger for the next century."

FOX Business' Megan Henney contributed to this report.