President Joe Biden’s attempts to ease concerns over historic inflation are being deflated by data released by the Bureau of Labor Statistics and even statements from his own White House.
Wednesday’s consumer price index saw headline inflation rise to 9.1%, the highest level in 40 years, outpacing both White House and private sector projections. The energy sector accounted for half of the monthly increases, yet year-over-year core inflation, which factors our energy and food costs heavily affected by the war in Ukraine, failed to decrease at the rate predicted by the White House and stayed virtually constant with the rate posted in May. Monthly core inflation rose by .1% in June, according to BLS, and prices continue to rise in sectors not affected by the war, specifically used cars and shelter, which registered increases of 7.1% and 5.6%, respectively.
BIDEN RUNS THE RISK OF LOOKING OUT OF TOUCH ON GAS PRICES
Voters of both parties consistently pick the economy, and inflation in particular, as the top issue heading into the 2022 midterm elections, and Biden responded to the June report by claiming it is “out of date” and does not reflect the average 40-cent decrease in domestic gas prices that occurred in July.
“Those savings are providing important breathing room for American families, and other commodities like wheat have fallen sharply since this report,” Biden wrote in a statement. “Inflation is our most pressing economic challenge. 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.”
The president additionally vowed to continue doing “everything [he] can to bring down the price of gas” and “urge Congress to act, this month, on legislation to reduce the cost of everyday expenses that are hitting American families, from prescription drugs to utility bills to health insurance premiums, and to make more in America.”
Jared Bernstein, a member of the White House’s Council of Economic Advisers, further noted the gap between headline and core inflation is “both uniquely high and revealing.”
“Partly due to the impact of Putin’s invasion on commodity prices, the gap between headline and core CPI is uniquely elevated: 9.1-5.9=3.2 ppt gap,” he tweeted. “That gap has more than doubled since Jan, underscoring the pressure from the war.”
Partly due to the impact of Putin’s invasion on commodity prices, the gap between headline and core CPI is uniquely elevated: 9.1-5.9=3.2 ppt gap. That gap has more than doubled since Jan, underscoring the pressure from the war. pic.twitter.com/C5dm72AZD9
— Jared Bernstein (@econjared46) July 13, 2022
However, wartime volatility also makes it virtually impossible for Biden and Democrats to predict when the current inflationary spike will end. Meanwhile, inflation-adjusted wages have plummeted compared to last year, falling 3.6% since June 2021 and 1% since May 2022.
One senior Democratic official called the situation a political “nightmare” heading into November.
“The president is doing everything he can to fight for American families, but there isn’t much else he can do on his own to lower prices,” this person told the Washington Examiner. “Putin’s war is responsible for these elevated costs, but working Americans are being forced to pay for his crimes, and they want action, not just words.”
Biden also sought Tuesday to contrast himself and Democrats with Republicans, whom he suggested would “make things worse by raising taxes on working people” if they took back congressional majorities in the midterm elections.
On the other hand, Sen. Rick Scott (R-FL), chairman of the National Republican Senatorial Committee, told the Washington Examiner that “Biden and the Democrats are creating an America where hard-working families can’t survive or thrive.”
“As of today, consumer prices have increased 9.1%, a new record high. This is not sustainable. If Democrats cared at all about this country and the well-being of Americans, they would stop their reckless spending and get our fiscal house in order,” he continued. “Enough is enough. Democrats have turned their backs on Americans, and this November, Americans are going to fight back at the polls.”
Nate Brand, a spokesman for the Republican National Committee, added that “while White House can’t seem to get their story straight for why Americans are paying more for gas and groceries, families know who is to blame.”
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“There is no amount of spin that can cover for the down-ballot Democrats who supported the trillions in reckless spending that gave us historic inflation,” he continued. “Worse yet, Democrats don’t seem to be doing anything to change course, and no amount of ‘messaging resets’ will fix what families are paying for everyday essentials.”
