The White House is bracing for an “extraordinarily” high inflation report in the wake of Russia’s invasion of Ukraine.
White House Press Secretary Jen Psaki told reporters on Monday, one day before the March inflation report is scheduled to be released, “We expect March CPI headline inflation to be extraordinarily elevated due to Putin’s price hike.”
“We expect a large difference between core and headline inflation reflecting the global disruptions in energy and food markets,” she continued.
She noted that core inflation data does not factor in food and energy prices — which tend to be more volatile — while headline inflation data does.
“We expect that to continue to reflect what we’ve seen the increases be over the course of this invasion,” Psaki said.
She cited the rise in gas prices which rose sharply after Russia invaded Ukraine.
“So that roughly 25% increase in gas prices will drive tomorrow’s inflation rating. And it’s not a surprise to us but we certainly think it will be reflected,” she added.
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PSAKI: Tomorrow's inflation reading is expected to be "extraordinarily elevated." pic.twitter.com/zaAdp9mpnc
— Townhall.com (@townhallcom) April 11, 2022
Biden administration officials have blamed Russian President Vladimir Putin for inflation.
In February, inflation hit a 7.9% annual rate, a four-decade high. The Wall Street Journal noted that higher energy and food prices fueled inflation.
In a statement, President Joe Biden said February’s “inflation report is a reminder that Americans’ budgets are being stretched by price increases and families are starting to feel the impacts of Putin’s price hike.”
“A large contributor to inflation this month was an increase in gas and energy prices as markets reacted to Putin’s aggressive actions,” he continued. “As I have said from the start, there will be costs at home as we impose crippling sanctions in response to Putin’s unprovoked war, but Americans can know this: the costs we are imposing on Putin and his cronies are far more devastating than the costs we are facing.”
However, Steven Rattner, an economic adviser for former President Barack Obama, pointed out in a tweet that inflation was already high before Russia launched its invasion.
He tweeted at the time, “Well, no. These are [February numbers] and only include small Russia effect.”
Well, no. These are Feb #'s and only include small Russia effect. This is Biden's inflation and he needs to own it. https://t.co/WsJjn6picV
— Steven Rattner (@SteveRattner) March 10, 2022
“This is Biden’s inflation and he needs to own it,” he added.
