WASHINGTON – President Biden on Tuesday celebrated a drop in the annual inflation rate to 7.1% – warning that a return to normal rates around 2% “will take time” and there could be “bumps along the way”.
Biden spoke after new data showed annual price growth cooled in November and continued to slowly decline from a peak of 9.1% in June. far above any point Since the early 1980s.
“In a world where inflation is rising in double digits in many of the world’s major economies, inflation in America is falling,” Biden said at the White House. refers primarily to European inflationthis slightly exceeded US rates due to power outages caused by Russia’s invasion of Ukraine.
“Make no mistake, prices are still very high and we have a lot of work to do,” the president said. “But things are improving and moving in the right direction.”
“Most Americans will see the drive down the street and the relief at the pump as gas prices drop,” he said. “There’s more good news in today’s report: Food inflation slowed last month, providing much-needed relief for millions of families in the grocery store.”
The White House has blamed inflation largely on COVID-19, corporate rate hikes and Russia’s invasion of Ukraine — while Biden’s critics point to significant increases in government spending since he took office in January 2021.
“I want to be clear: it will take time for inflation to return to normal levels as we transition to sustained and sustained growth,” Biden said. “But we could see setbacks along the way. We shouldn’t take anything for granted. But what’s clear is that my economic plan is working and we’re just getting started.”
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He added, “I know it’s been a tough few years for hard-working Americans and small businesses, and things are still very rough for many people. But there are bright spots across America where we can see the impact of our economic strategy.” we’ve started to see and we’re just getting started.”
Biden has signed the largest spending bills in US history, arguing that they are necessary to keep the economy afloat and could ultimately reduce some consumer spending, including by improving transportation and energy efficiency.
Last year, Biden signed a $1.9 trillion stimulus bill that passed without Republican support and a bipartisan $1.2 trillion infrastructure bill. This year, he signed the $280 billion bipartisan CHIPS and SCIENCE Act, a $437 billion environmental and health care spending bill. $270 billion in veterans health care account.
Although some of the spending bills included new revenue to cover the costs, skeptics accused the bill’s authors of budget gimmicks to paint a brighter economic picture by spreading the spending over fewer years than those offsets.
Republicans will take back the House next month and vow to block Biden’s ambitious proposals. Rep. Elise Stefanik (R-NY), the chairwoman of the House Republican Conference, told The Post in a recent interview that the GOP is committed to “rolling back this reckless spending” to lower inflation.
“The first way to strengthen the economy is to curb inflation by curbing reckless spending,” Stefanik said. “We will absolutely use that power … not only to roll back this reckless spending, but to stop Joe Biden’s spending proposals … and that will start to bring down the inflation rate.”