McCarthy slams Democrats for 'historic disaster,' as inflation reaches new 40-year-high

EXCLUSIVE: House Republican Leaders assailed President Biden for Friday’s inflation report showing inflation hitting a fresh 40-year record-high, accusing him of failing to address a problem that inflicts severe economic pain on average Americans.

The latest inflation figure signals another "painful month" for Americans, said House Minority Leader Kevin McCarthy in one of several statements GOP leaders provided exclusively to Fox News. McCarthy slammed Democrats for their economic record, calling it a "historic disaster."

The Labor Department on Friday said the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rents, rose 8.6% in May from a year ago. Prices jumped 1% in the one-month period from April.

INFLATION HITS FRESH 40-YEAR HIGH IN MAY WITH CONSUMER PRICES SURGING 8.6%

Those figures were both higher than the 8.3% headline figure and 0.7% monthly gain forecast by Refinitiv economists.

May’s inflation rate marks the fastest pace of inflation since December 1981. The White House has repeatedly blamed surging costs on Russian President Vladimir Putin and his war on Ukraine, as well as the COVID-19 pandemic.

"President Biden and Speaker Pelosi denied economic realities for 17 months, creating raging inflation. Americans don’t need to hear spin from Democrats that the economy is in a ‘historic place’ and ‘America is starting to feel more like itself again,'" McCarthy told Fox News.

House Minority Whip Steve Scalise, R-La., panned Democrats for staging a hearing Thursday night on the Jan. 6 Capitol riot while inflation soars.

"It’s disgraceful that as inflation rates just hit a new four-decade high, Democrats are wasting time on made-for-TV political stunts targeting Donald Trump rather than doing anything to address this crisis they’ve created," he told Fox News. "It’s telling that while families are struggling to afford to put food on the table and gas in their cars that Democrats aren’t devoting any primetime hearings to those issues, but instead only to January 6th. Their priorities are completely out of touch with the reality facing everyday Americans."

House GOP Conference Chair Elise Stefanik, R-N.Y., told Fox News: "This is just the latest example of how one-party Far Left rule in Washington has failed the American people. Our skyrocketing inflation, historic gas prices, baby formula shortage, border crisis, and surging violent crime are the issues impacting Americans every day. House Republicans will address these crises when we earn back control of the House this November." 

"The reality is that prices continue to increase at an accelerating rate, and Americans are paying $5.00 per gallon nationally despite Biden draining our strategic petroleum reserve by 1 million barrels per day," McCarthy continued. "Democrats must know that this is not the ‘incredible transition’ the president pretends it is, and yet they have no solutions to lower costs."

"Today’s report is concerning because it signals another painful month for American workers, families, and small businesses and shows that Democrat policies continue to push things to get worse even faster," McCarthy added.

On the other side of the Capitol, Republican Sen. Josh Hawley, R-Mo., called on Biden to resign if he can't get a handle on the economic crisis. 

"Joe Biden’s war on American families continues. His policies have pushed inflation to generational highs, and he still won’t take any responsibility," Hawley told Fox News Digital. "If he can’t do the job, he should step down now." 

And Republican National Committee Chairwoman Ronna McDaniel slammed the Biden administration and Democrats, saying they "don't care about the day-to-day struggles of the American people" and shifted to the midterm elections in November.  

"It’s shameful and it’s intentional," McDaniel told Fox News. "This November, do Democrats believe Americans will forget what Biden put them through?" 

INFLATION TIMELINE: MAPPING THE BIDEN ADMIN'S RESPONSE TO RAPID PRICE GROWTH

Inflation has exacerbated a financial strain for millions of Americans, with core prices, including more volatile measurements of food and energy, climbing 6% from the previous year—also more than Refinitiv expected. Core prices also rose 0.6% on a monthly basis, suggesting that underlying inflationary pressures remain strong.

Rising inflation is eating away at strong wage gains that American workers have seen in recent months: Real average hourly earnings decreased 0.6% in May from the previous month, as the inflation increase eroded the 0.3% total wage gain, according to the Labor Department. On an annual basis, real earnings actually dropped 3% in May.

The Biden administration in March announced it would release 1 million barrels of oil each day for the next six months from the U.S. Strategic Petroleum Reserve in an effort to combat soaring gasoline prices.

But Americans are still facing some of the highest in decades, with the national average hitting $5 a gallon on Thursday.

Energy Secretary Jennifer Granholm this week predicted a tough summer for drivers due to record-high gas prices.

"Yeah, this summer is going to be rough," she said during an interview with CBS News this week. "I'll just be honest with you. The Energy Information [Administration], which is the entity that projects forward the price of gas the price of oil, has said that by the fall, it should be down to $4.27 a gallon, and by late this year, early next year, it'll be down to 4 maybe under 4, maybe high $3 a gallon."

"So there will be some relief on the horizon, but during the summer driving season, it is going to be rough, no doubt about it because we have such a demand and supply mismatch on the global market for oil," she added.

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The Biden administration last year claimed inflation would be "transitory."

But earlier this month, Treasury Secretary Janet Yellen said she "was wrong then about the path that inflation would take."

President Biden on Friday though stressed that the inflation numbers underscore "why I have made fighting inflation my top economic priority." 

The president continued to blame Russian President Vladimir Putin for high gas prices, energy, and food prices. 

"Putin’s Price Hike hit hard in May here and around the world: high gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine," Biden said. "Even as we continue our work to defend freedom in Ukraine, we must do more—and quickly—to get prices down here in the United States." 

He added: "My Administration will continue to do everything we can to lower prices for the American people. Congress must act urgently as well."

The president called on Congress to "pass a bill to cut shipping costs this month, and get it to my desk, so we can lower the price of goods. And, I call on Congress to pass legislation to cut costs for families like energy bills and prescription drugs." 

"We all have work to do to get inflation down. What will not help is the plan by some Republicans in Congress to raise taxes on the middle class and working families," he said. "That would be a step in the wrong direction, and I strongly oppose it." 

A new Quinnipiac University poll released Wednesday showed that Americans ranked inflation as the "most urgent issue" facing the country over gun violence by a margin of 2-to-1, as President Biden tied his lowest approval rating yet.

According to the poll, 34% of Americans said inflation was "the most urgent issue facing the country today," while just 17% saw gun violence as the top issue.