President Joe Biden had a lot to say about the slight decline in the annual inflation rate. The decline reached 7.1%, but Biden warned that it would take time to go back to normal levels of around 2%. He predicted setbacks along the road.
New data revealed that annual price rises slowed in November, continuing a gradual slowdown from a peak of 9.1% in June, but they remained significantly higher than at any time since the early 1980s. Biden commented on the released data.
During his speech at the White House, he referred to European inflation, which is slightly higher than US rates as a result of the energy disruption brought on by Russia’s invasion of Ukraine. Biden noted that inflation is rising at double digits all over the world, but America has marked an inflation decline, reported the NY Post.
President continued his speech by saying that prices are still very high and that the country leaders still have a lot of work ahead of them. However, he pointed out, things are starting to look up.
Biden believes that most Americans are able to see the gradual progress, especially when they stop at the pumps where the prices are falling. President revealed new data during his speech that showed the food inflation slowing down, which is a major relief for families throughout the country.
According to data from the Bureau of Labor Statistics, US food costs rose 10.6% over the previous year, with grocery prices rising by 12%, while energy prices soared by 13.1%.
All items, excluding food and energy, had an increase in “core inflation” of 6% from November 2021 to November 2022.
The consumer price increase was 7.1% in November, the slowest rate in a year.
When asked by a reporter when costs would go back to normal, Biden responded that he thought it would happen by the end of 2023.
For the previous two decades, annual inflation has generally stayed within the Federal Reserve’s goal range of 2%. Concern over a potential recession for next year has intensified as a result of the central bank’s sharp increase in interest rates in an effort to reduce inflation.
While Biden’s detractors point to significant increases in government spending since he entered office in January 2021, the White House has mostly blamed inflation on COVID-19 and Russia’s invasion of Ukraine.
Biden pointed out that America could experience setbacks and that nothing should be taken for granted. However, he reassured people that his plan was working and that the slight inflation decrease was just the beginning.
Biden signed a $1.2 trillion bipartisan infrastructure measure and a $1.9 trillion stimulus plan last year, both of which were approved without Republican support. He also approved budget bills totaling $437 billion for environmental protection and healthcare, $270 billion for veterans’ health care, and the $280 billion bipartisan CHIPS and Science Act this year.
Biden asserted that the bills were necessary to keep the economy going. He reassured the public that the bills would cut consumer costs and improve transportation and energy efficiency.