White House plays down upcoming release of ‘high’ inflation figures
White House Press Secretary Karen-Jean-Pierre said Monday that the administration expects a high inflation number when the new consumer price index is released Wednesday, but she downplayed any mistake President Biden made in the matter.
“On Wednesday, we have new data for the consumer price index and inflation, and we expect the main figure, which includes gas and food, to be very high, mainly due to the rise in gas prices in June,” Jean-Pierre said. “Gas and food prices are still heavily affected by the war in Ukraine.”
Jean-Pierre also described the data as “retroactive” and “outdated”, noting that energy prices have fallen from their highs and are “expected to fall further”.
“The average retail price of gas was 11% higher in June than it was in May, and the cost of gas in July was already seven percent lower than its June peak,” she added.
US inflation expectations reach 11 new years in June, says New York Fed
Jean-Pierre’s comments came as consumer expectations about where inflation would be one year from now rose to another record high in June, according to the New York Federal Reserve’s Survey of Consumer Expectations. Expectations for price gains are the highest since the survey began in 2013. Despite this, three years from now, consumers are seeing inflation ease back slightly to 3.6% – down from the 3.9% recorded last month.
Meanwhile, Republicans are steadily attacking Democrats for campaign inflation. They attribute high inflation to massive government spending by Democrats, particularly Biden’s US bailout.
Americans are spending an extra $5,000 a month on gasoline at SkyRocket prices
Inflation is perhaps the biggest contributor to the political environment in which Republicans expect a big win in November.
“I’m very optimistic about the upcoming elections in November. The number one issue is inflation,” Senate Republican Convention Chairman John Barrasso said on “Fox News Sunday.” “And on all the issues that people care about, they see Republicans as the answer.”
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Democrats and the White House initially said inflation would be temporary in early 2021. But the numbers kept rising until prices reached their highest levels in 40 years.
“Over the period from 1991 to 2020, the inflation rate was, on average, close to 2 percent, which is the Fed’s long-term goal,” Kansas City Federal Reserve President Esther George said in remarks published Monday. . “Today, inflation has risen to 8.6 percent, the fastest pace in 40 years.1 For many younger Americans, high inflation is a new experience, while for others, the situation may seem uncomfortable reminiscent of the 1970s.”
FOX Business’s Megan Heaney and Matthew Reddy contributed to this report.