President Joe Biden claimed that Wednesday’s Bureau of Labor Statistics report, which logged the highest year-over-year price increases in four decades, “shows a meaningful reduction in headline inflation over” the previous month.
The latest Consumer Price Index report saw inflation jump to 7% over 12 months and comes on two consecutive jobs reports that fell far short of administration projections. Biden did not mention the 7% statistic directly in his statement responding to the report.
WHITE HOUSE PREPARING FOR ‘ELEVATED’ INFLATION THROUGH THE END OF 2022
“Today’s report — which shows a meaningful reduction in headline inflation over last month, with gas prices and food prices falling — demonstrates that we are making progress in slowing the rate of price increases. At the same time, this report underscores that we still have more work to do, with price increases still too high and squeezing family budgets,” he wrote. “Inflation is a global challenge, appearing in virtually every developed nation as it emerges from the pandemic economic slump.”
He added that “America is fortunate that we have one of the fastest growing economies — thanks in part to the American Rescue Plan — which enables us to address price increases and maintain strong, sustainable economic growth. That is my goal and I am focused on reaching it every day.”
National Economic Council Director Brian Deese added on MSNBC that people should “focus” on the economic progress achieved under the administration, specifically rising wages.
“On Friday, we got historic wage increase data, the first in 40 years,” he stated. “I understand that that may be less exciting as a headline than the inflation prints, but the facts are that the wages are growing for people at the bottom, jobs are plentiful and people have opportunities in this labor market. That’s a positive thing, and what we need to focus on now is how do we sustain that kind of economic recovery.”
.@BrianDeeseNEC to @SRuhle:
“On Friday, we got historic wage increase data…the fact is that wages are growing for people at the bottom, jobs are plentiful, and people have opportunities in this labor market.” pic.twitter.com/oqHV7g8vt4
— Mike Gwin (@MGwin46) January 12, 2022
The White House has tried to highlight positive economic signals at the expense of more troubling data, but the CPI statistic, in particular, will likely cause Federal Reserve Board Chairman Jerome Powell to raise interest rates in the near future, which some experts say could stall economic growth.
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“When the annual rate of inflation begins with a seven, there is immense pressure on the Federal Reserve to get it under control, supply chain issues notwithstanding,” Greg McBride, Bankrate’s chief financial analyst, suggested.
