Inflation politics in Washington took a sudden turn on Wednesday when a report revealed that consumer prices increased at their weakest rate since early in the Biden administration.
Republicans have criticized the Biden administration for the price of food, petrol, utilities, and other items, claiming that his $1.9 trillion pandemic relief plan and support for electric vehicles were to blame for the inflation rate reaching a four-decade high.
The GOP’s argument has appealed to voters, but the consumer price report for June indicates that there haven’t been any of the job losses that some economists and Republican leaders said would happen during the Biden administration.
The GOP’s argument has appealed to voters, but the consumer price report for June indicates that there haven’t been any of the job losses that some economists and Republican leaders said would happen during the Biden administration.
Inflation today, unlike a year ago, is mostly driven by the Biden administration’s gauge of shelter based on the cost of renting a property. The statistics from AP VoteCast, a comprehensive poll of the nation’s electorate, indicate that the majority of voters last year — 83% of Republicans and 73% of Democrats — own their houses and are mostly protected from rising rental prices, which gives the inflation argument some complexity.
The inflation statistic was quickly seized upon by the Biden administration as evidence that its measures are having an impact. The unemployment rate is strong at 3.6%, defying forecasts that the Federal Reserve’s efforts to fight inflation would result in job losses.
The head of the White House Council of Economic Advisers, Jared Bernstein, stated that inflation has fallen by two-thirds over the previous year. “It is particularly notable and highly consistent with Bidenomics to see this steep a decline in the rate of inflation while employment remains so uniquely strong,” he added.
The White House sent a statement from the Biden administration shortly afterward that said, “Good jobs and lower costs: That’s Bidenomics in action.” The president was prepared to take credit.
For claiming that his programs are helping U.S. families, Biden was labeled “delusional” by Sen. Rick Scott, R-Fla.
“We need to control this skyrocketing inflation and reckless spending and stop expecting our children and grandchildren to foot the bill,” Scott added. That is how the American dream is preserved, according to him.
The Biden administration wants people to pay attention to the cutting trend. How many gallons of gas may be bought on average for each hour of labor is one important figure being monitored by the White House.
Republican lawmakers and candidates criticized the Biden administration for record gas prices last year; this argument helped the GOP win control of the House in 2022.
This argument, however, appears to be out of date, according to an internal White House analysis: a single hour of work 12 months ago could only pay for 5.5 gallons of gas, a figure that has since risen to slightly more than 8 gallons.
The boost appears to reflect a 27% decline in gas prices compared to a year ago, as well as 5% average pay gains.
The Biden administration has always denied claims that his $1.9 trillion in COVID-19 relief funds contributed to inflation. The biggest culprits, he added, were broken supply lines and Russia’s invasion of Ukraine. In the elections last year, this argument didn’t gain any traction. According to the AP VoteCast, 54% of voters blamed Biden’s politics for increasing inflation, while 46% cited events outside his control.