President Joe Biden released a statement Wednesday saying 9.1% inflation is “unacceptably high” but “also out of date,” saying energy prices account for more than half of the monthly increase.
Inflation accelerated to an explosive 9.1% for the 12 months ending in June, the highest level in four decades, according to the consumer price index. Consumer prices have been rising fast since last August, especially for staples such as food and gas, and eaten into Biden’s approval ratings as the midterm elections approach.
INFLATION JUMPS TO 9.1%, HIGHEST IN FOUR DECADES
“Inflation is our most pressing economic challenge,” Biden’s statement reads. “It is hitting almost every country in the world. It is little comfort to Americans to know that inflation is also high in Europe, and higher in many countries there than in America. But it is a reminder that all major economies are battling this COVID-related challenge, made worse by Putin’s unconscionable aggression.”
The president noted that gas prices have gone down over the last month, falling from $5 a gallon in June to $4.66 per gallon today, according to AAA, and he also said core inflation is down for the third month in a row. Core CPI, which strips out volatile food and energy prices, increased 5.9%, still nearly three times the Federal Reserve’s target of 2% inflation.
Despite Biden’s statements before and after the numbers were released, economists say people are right to be worried about inflation numbers not seen since the early days of the Reagan administration.
“With their sentiment at the lowest level in years, consumers have a right to be highly distraught,” said Mark Hamrick, a senior economic analyst at Bankrate. “They’re facing a combination of high and sustained inflation robbing them of purchasing power.”
Biden says tackling inflation is his top priority, but the trend has only been upward since he took office. Inflation stood at 1.4% the month he was sworn in, reaching 5% by May 2021, 7% by November, 8.5% in April, and now 9.1%. Gas prices, which sanctions against Russia most directly affect due to the country’s status as a major oil exporter, were also rising ahead of the war in Ukraine.
Conservatives have roundly criticized Biden over the issue, with the Republican National Committee calling it “insanity.”
“There is no end in sight for families struggling with their wages and livelihoods being wiped out by Bidenflation,” said RNC Chairwoman Ronna McDaniel. “Everyone feels the cost of Biden and Democrats’ reckless spending as Americans strain to afford gas and groceries. Voters know the best way to combat inflation is to vote out Democrats in November who rubberstamped Biden’s failed agenda.”
The president outlined four steps he will take to get inflation under control. One is to bring down the price of gas, two is to push legislation through Congress that would affect the costs people pay for items such as prescription drugs and health insurance premiums, three is to oppose tax hikes, and four is to “give the Federal Reserve the room it needs to help it combat inflation.”
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Biden continued pointing not only to Putin but to oil companies and gas stations as a factor in high gas prices.
“The price of oil is down about 20% since mid-June, but the price of gas has so far only fallen half as much,” he said. “Oil and gas companies must not use this moment as an excuse for profiting by not passing along savings at the pump.”
