President Joe Biden took credit on Thursday for the recent news of a year-over-year inflation decline and issued a warning to Republicans in the House of Representatives who may seek to undo his agenda.
Price levels rose 7.7% between October 2021 and October 2022, according to a Thursday report from the Bureau of Labor Statistics, showing that inflation has begun to slow amid harsh contractionary policy from the Federal Reserve. The month-to-month increase of 0.4% fell below analysts’ forecasts, although a 0.6% surge in food prices and a 0.8% increase in shelter prices added to the headline number, while energy prices reversed the downward trend to surge 1.8%.
“Today’s report shows that we are making progress on bringing inflation down, without giving up all of the progress we have made on economic growth and job creation,” Biden said in a statement from the White House. “My economic plan is showing results, and the American people can see that we are facing global economic challenges from a position of strength.”
The commander-in-chief also dismissed concerns about elevated gas prices, neglecting to mention the spike in energy costs and instead remarking that prices at the pump have fallen $1.20 since their peak in the summer. Americans are currently paying an average of $3.80 per gallon, according to data from AAA, marking a 60% increase since Biden took office at the beginning of last year.
The White House has released large portions of the Strategic Petroleum Reserve over the past several months, which led critics to argue that officials were merely attempting to reduce energy prices ahead of the midterm elections to improve odds for their legislative allies. Voters had identified economic issues as a significant factor in their voting decisions, although the red wave predicted by many commentators ultimately failed to materialize.
Even though food expenses continued to increase, Biden said the report “shows a much-needed break in inflation at the grocery store as we head into the holidays.” Turkey prices are expected to surge amid Thanksgiving celebrations due to an outbreak of the avian flu impacting flocks across the country, while nominal gains in holiday spending will be eclipsed by elevated price levels. “It has been a hard two years to recover from where things were in January 2021,” Biden added. “But our economy has reopened, new jobs are being created, new businesses are growing, and now, we are seeing progress in getting inflation under control — with additional measures taking effect soon.”
Most projections show that Republicans are likely to take a slim majority in the House of Representatives, while control of the Senate is yet to be determined. Biden, therefore, cautioned Republicans who desire to stand against his policies, vowing that he would “oppose any effort to undo my agenda” or worsen inflation. “We are on the right path — we need to keep moving forward to build an economy from the bottom up and the middle out,” he commented.
The decrease in year-over-year inflation last month occurred before the Federal Reserve raised the target federal funds rate by 0.75% for the fourth consecutive time, marking the most aggressive contractionary monetary policy efforts in three decades.
