US President Joe Biden (CR) attends a meeting with Ukrainian President Volodymyr Zelensky at the sidelines of the NATO Summit in Vilnius on July 12, 2023.
Andrew Caballero-Reynolds | AFP | Getty Images
WASHINGTON — President Joe Biden on Wednesday celebrated new data that showed inflation cooling more quickly than expected.
“Good jobs and lower costs: That’s Bidenomics in action,” Biden said in a statement. “Today’s report brings new and encouraging evidence that inflation is falling while our economy remains strong.”
The data is positive news for the economy – and also for Biden, who is seeking a second term in office. A strong economy tends to benefit the incumbent and slowing inflation could take barbs away from opponents.
The Bureau of Labor Statistics on Wednesday released the consumer price index report for June, a popular gauge of inflation. Year over year, inflation rose 3%, the lowest level in more than two years.
On a monthly basis, the index, which measures a broad swath of prices for goods and services, rose 0.2%. Core CPI, which does not include food and energy costs, rose 4.8% from a year ago and 0.2% on a monthly basis.
“Real wages for the average American worker are now higher than they were before the pandemic, with lower wage workers seeing the largest gains,” Biden said. “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.”
Biden’s top economic advisor also echoed the president’s optimism in a speech at the Economic Club of New York on Wednesday.
“The economy is defying predictions that inflation would not fall absent significant job destruction,” said National Economic Council Director Lael Brainard. “Just today, we saw new and encouraging evidence that the U.S. economy is on the path to moderate inflation accompanied by a resilient jobs market.”
She noted that annual inflation has declined every month for 12 consecutive months.
“And inflation in the United States is now the lowest among G-7 nations – for both headline and core inflation – even as our economic recovery from the pandemic has been the strongest,” Brainard said.