WASHINGTON - US President Joe Biden said on Wednesday that inflation is showing signs of a moderate but that more work is needed to make consumers' lives easier.
After a report showing consumer prices stayed the same in July, Biden said we're seeing signs that inflation may be beginning to moderate. The people were still hurt, but there was zero inflation last month. The Labor Department's Consumer Price Index CPI data was released as a relief for an administration facing voter anger over inflation ahead of the Nov 8 midterm elections for control of Congress.
The report showed that a drop in gasoline costs offset rising food, rent and other costs during the month. The CPI increased by a weaker than expected 8.5 per cent in the 12 months to July, following a 9.1 per cent rise in June.
The political aides of Biden regard gas prices as particularly sensitive to voters and have released oil from the country's strategic reserves in a bid to ease prices. They say doing so will keep the economy out of the recession and help Biden's fellow Democrats in the midterms. The Republicans have made Biden's handling of the economy a top campaign issue.
Biden, who is working to pass a bill on taxes, climate and healthcare called the Inflation Reduction Act, cautioned that his administration may face setbacks in its goal to cut inflation.
With the global challenges we face, from the war in Europe to the disruption of supply chains in Asia to the shutdown of supply chains, we could face additional headwinds in the months ahead, he said.