President Joe Biden praised a report from the Department of Labor on Wednesday showing that the consumer price index rose year-over-year 5.4% for the month of July, again at the fastest level since 2008.
The Wall Street Journal reported:
Consumer prices rose 5.4% in July from a year earlier, the same pace as in June, the highest 12-month rate since 2008, the Labor Department reported Wednesday. On a monthly basis, however, price pressures weakened. The department’s consumer-price index climbed a seasonally adjusted 0.5% in July from June, a significantly slower pace than its 0.9% increase in June from May, though well above the average 0.2% rate from 2000 to 2019.
“Today, I’m pleased to share more good news with the American people,” Biden said during a press conference on Wednesday. “The latest report on consumer price shows, the prices show, that we’ve expanded some easing, excuse me, the expected easing we thought was going to come has increased, that we are, we’ve seen a good monthly report.”
“A monthly core consumer price index is down by nearly two thirds from its pace over the past three months. And when you take out the goods directly impacted by the pandemic like cars and airplane tickets, and the monthly core consumer price index is less than two tenths of 1%,” Biden claimed. “Jobs are up and monthly price increases have come down.”
Aneta Markowska, chief financial economist at Jefferies LLC, told The Wall Street Journal that a slight weakening of price pressures from June to July is not necessarily a sign that inflation is starting to slow down.
“It’s like the equivalent of going from a 104-degree to a 101-degree fever–it’s still elevated. It’s just not as hot as what we saw in the prior three months,” Markowska said. “There is still some pressure in the pipeline that should show up in the next few months.”
WATCH:
Joe Biden: Consumer price index showing prices again rising at fastest pace since 2008 is “a good monthly report” pic.twitter.com/GCqxxWJlPC
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PARTIAL TRANSCRIPT:
JOE BIDEN, PRESIDENT: Today, I’m pleased to share more good news with the American people. The latest report on consumer price shows, the prices show, that we’ve expanded some easing, excuse me, the expected easing we thought was going to come has increased, that we are, we’ve seen a good monthly report. A monthly core consumer price index is down by nearly two thirds from its pace over the past three months. And when you take out the goods directly impacted by the pandemic like cars and airplane tickets, and the monthly core consumer price index is less than two tenths of 1%.
Here’s where we stand. Jobs are up and monthly price increases have come down. Economic growth is up, the fastest in 40 years, and unemployment is coming down. So I would argue the Biden economic plan is working. Historic investments are on the way as well. This isn’t accidental; it’s a result of our strategy to get shots in arms and grow the economy from the bottom up, in the middle out, and as the rest of the result of the American Rescue Plan and everything else that we’ve done. And as a result of the grit and determination and really hard work of the American people.