President Joe Biden is touting the latest Inflation report as a sign that Inflation is starting to come down.
In a statement on Tuesday, Biden said, “Today’s data show more progress in bringing global Inflation down in the US economy. Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do.”
He continued:
“Gas prices are down an average of $1.30 a gallon since the beginning of the summer. This month, we saw some price increases slow from the month before at the grocery store. And real wages went up again for a second month in a row, giving hard-working families a little breathing room,” he continued.
Finally, Biden added, “It will take more time and resolve to bring Inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy. And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America.”
Read the statement below:
In August, prices rose 8.3% compared to the same month last year, which was down from the 8.5% in July.
However, Heather Long, an economic columnist for The Washington Post, noted that month-to-month Inflation increased 0.1% in August. Economists had predicted that there would be a drop in prices.
The latest report comes despite three consecutive months of falling gas prices that has brought the national average price for a gallon of gas down to $3.70.
Additionally, it was higher than the 8.1% that was predicted by economists surveyed by Bloomberg.
Long also pointed out that price increases remained high as food at home prices were up 13.5% since last year, which was the largest increase since 1979. Rent was up 6.7% over the last 12 months, which was the largest increase since 1986. Electricity costs were up 15.8%, the largest increase since 1981. And health insurance costs were up 24.3%, which is the largest increase ever.
Biden mentioned the passage of the Inflation Reduction Act as a measure that he believes will help tackle price increases.
However, several studies have found that the legislation may not actually have an impact on impact on Inflation — at least not in the short term.