The U.S. consumer price index (CPI) hit a 40-year high again in June, and U.S. President Biden said in a statement on Wednesday (13th) that although inflation was unacceptably high, the data was outdated and did not reflect recent Gasoline prices fell. Biden also vowed to do everything in his power to lower gasoline prices and give the Federal Reserve the space it needs to fight inflation.
Biden pointed out that the CPI data released today failed to reflect the nearly 30-day decline in gasoline prices, which have fallen by about 40 cents since mid-June, providing important breathing room for American households.
Biden also said that core inflation, which excludes food and energy, may be showing signs of slowing: the core CPI index fell for the third straight month in June and was below 6% for the first time since last year.
Biden’s statement came as he traveled to the Middle East to persuade Saudi Arabia and other Organization of the Petroleum Exporting Countries and partners (OPEC+) to increase oil production.
Data released by the U.S. Department of Labor on Wednesday showed that the CPI in June increased by 9.1% year-on-year, the largest increase since the end of 1981, far exceeding market expectations of 8.8% and the previous value of 8.6%; the monthly CPI growth rate increased by 1.3%, hitting a new high since 2005; The annual growth rate of CPI was 5.9%, higher than the expected 5.7%, but slightly lower than the previous value of 6%; the monthly growth rate of core CPI reached 0.7%, the largest monthly increase in a year.
In fact, the White House has long expected the inflation data that broke the table in June. Earlier this week, the White House took a “precautionary shot”, predicting that inflation will be “high” in June, noting that the CPI index will climb “significantly” in June as Americans grapple with soaring gasoline and food costs.
However, as Biden said, the price of gasoline in the United States has fallen recently. The average gasoline price in the United States in July fell by 12% compared with that in June, indicating that the CPI data is expected to decline slowly from July.
Oil prices tumble as global recession fears tumble this weekBrent CrudeFutures and U.S. West Texas crude oil futures fell into a technical bear market, which means that inflation in the energy sector will ease. In addition, inflation will cool due to a surge in retail inventory leading to more discounts and softer used-car prices.
Inflation is the number one problem in the current Biden administration. Most of the American people are in general pessimism about the U.S. economy and their own living conditions. At the same time, Biden’s approval rating is also falling sharply. Many voters have expressed dissatisfaction with Biden’s leadership and want Democrats to introduce a new leader in the 2024 presidential race.