White House cheers ‘Bidenomics’ as inflation rises by only 0.2%
President Joe Biden hailed that inflation ticked up only 0.2 per cent in June and had its lowest 12-month increase in more than a year on Wednesday.
The Consumer Price Index for All Urban Consumers showed that inflation rose 0.2 per cent last month after it had only ticked up 0.1 per cent in May, in a sign that inflation is easing up. Meanwhile, the all-items index rose 3 per cent for the past twelve months ending in June, its lowest 12-month increase since March of 2021.
“Good jobs and lower costs: That’s Bidenomics in action,” Mr Biden said in a statement. “Today’s report brings new and encouraging evidence that inflation is falling while our economy remains strong.”
Shelter accounted for 70 per cent of the uptick in inflation, rising 0.4 per cent in the past month after it had increased 0.6 per cent in May, while it jumped 7.8 percent in the past 12 months. Motor vehicle insurance, recreation, household furnishings and operations and new vehicles also increased in the past 12 months and contributed to the increase.
“Our progress creating jobs while lowering costs for families is no accident, and I will continue to fight for lower costs for families every day,” Mr Biden said. “I ran for office to grow the economy from the middle out and bottom up, not the top down: that’s exactly what we’re doing.”
Elsewhere, food prices only increased 0.1 per cent in June as the index for food at home stayed the same while food away from home rose 0.4 per cent in the last month. The price of food has increased 5.7 per cent in the past 12 months.
The numbers come after the Federal Reserve paused raising interest rates, ending a streak when it consistently raised rates for 15 months as a means to tamp down on increasing prices. It had previously raised interest rates 10 consecutive times.
Last week, the Bureau of Labor Statistics reported that the US economy added 207,000 jobs for the month of June and revised down previous months’ job gains, a sign that while the US economy continues to add jobs, the Federal Reserve’s interest rate increases might have successfully cooled down an overheated labour market, which contributes to inflation.
Inflation has consistently plagued the US economy, as well as other economies around the globe.
Mr Biden has hoped for the economy to improve as he seeks a second term in the White House, recently adopting the term “Bidenomics” after the conservative Wall Street Journal editorial page had used it pejoratively.
