Staff Reports
On Tuesday, the White House got itself into a pickle. The Consumer Price Index struck a surprising blow on the day when "thousands of supporters" to stand in "celebration" of Biden's efforts to battle inflation.
Contrary to forecasts, August inflation rates increased sharply, raising the average inflation rate—excluding food and energy—to 8.3%. This is double what was predicted for core CPI. But despite the proof, the White House pressed on and celebrated:
The drop in oil and gas costs from the prior month was one of the main reasons why many economists—and therefore, the White House—expected the August CPI statistics to be lower than they were. Gas prices are down about 10%. However, Tuesday's figures showed that not only was this decrease in petrol prices insufficient to avert economic problems, but that the economy is actually deteriorating far more quickly than anticipated. The typical American is unable to keep up.
With the Inflation Reduction Act, the American people won and the special interests lost.
Today, we celebrate its passage at the White House. pic.twitter.com/FQDRLkKK1m
— President Biden (@POTUS) September 13, 2022
According to the Wall Street Journal, the average American family now spends $460 MORE each month for the same products and services that they did last year. Over $5500 extra each home is added to that each year.
Prior to signing the Inflation Reduction Act at the White House, President Biden was compelled to issue a statement claiming that his policies are moving America in the right path despite the evidence:
The results from today demonstrate more improvement in reducing global inflation in the US economy. Prices have virtually remained unchanged in our nation over the last two months, which is good news for American families who still have work to do. Since the start of the summer, the average price of a gallon of gas has decreased by $1.30.
Three main storylines support Biden's assertion that the US economy is “progress” : real earnings are rising, gas prices are down, and Biden's $1.9 trillion spending plan did not trigger inflation.
CPI report not pretty. Headline fine (0.1% CPI for Aug or a 1.4% annual rate in that month, with prices up 8.3% over the last year).
Problem is excluding volatile food and energy and was ugly (0.6% for Aug or a 7.0% annual rate).
Broad-based relief not coming. pic.twitter.com/WVODxYmrYm
— Jason Furman (@jasonfurman) September 13, 2022
However, earnings have not increased. When adjusted for inflation, average hourly wages are down -2.8%.
Happy 1 year anniversary of Biden lying about inflation only being "temporary." pic.twitter.com/p4KZO9eDSx
— Tim Young (@TimRunsHisMouth) July 19, 2022
A deeper look at specific requirements only makes the situation worse; the price of eggs has increased by over 40% since last year, and food and other essential prices are eating up any little increases in US earnings. With inflation outpacing wage growth for 17 straight months, Biden's spending plans have hurt the US economy.
Any positive news on the gas front is offset by the fact that fundamental expenses for almost everything are rising dramatically. Despite a 10% decrease in the last month compared to the same period last year, gas prices have increased by a startling 25% overall. Since last year, utilities have increased 33%.
Exactly four weeks ago, I signed the Inflation Reduction Act into law.
So today, we're celebrating.
Tune in at 3 PM ET as I deliver remarks and welcome the leaders and advocates who made it happen to the People's House.
— President Biden (@POTUS) September 13, 2022
Even Obama's Council of Economic Advisors chairman delivered the dismal news in no uncertain terms: "CPI report not pretty."
The preceding is a summary of an article that originally appeared on Oann.
