In a study released on Tuesday, the Bureau of Labor Statistics noted the Consumer Price Index (CPI) increased by 8.3 percent between August 2021 and August 2022.
As gas prices continue to fall, this number represents a slowdown from the 8.5% year-over-year pace recorded in July and the 9.1% year-over-year rate seen in June.
Food, lodging, and medical prices rose 0.1% from July to August. Economists predicted 0.1% headline inflation.
According to the chief economic analyst at Bankrate, Mark Hamrick, the significant drop in fuel prices is commendable, but it does not address the underlying issue of inflation. The August report has many unwelcome shocks.
OUCH! US Headline #inflation fell less than expected in August.
But… Core #inflation rose more than expected, hitting 6.3%.
Buckle up! pic.twitter.com/YtGA3a2sdE
— jeroen blokland (@jsblokland) September 13, 2022
Costs of groceries and other food items bought for the home increased by 0.7% over the previous month. Gas and electricity rates jumped 3.5% and 1.5%.
Core inflation, which excludes food and energy, rose 0.6% in August, quicker than July and 6.3% year-over-year. Core inflation was projected to increase by 0.3% by economic analysts.
President Biden declared triumph over “basically flat” pricing despite bad surprises.
He said in a declaration that bringing inflation down will require more time and determination. This is why they signed the Inflation Reduction Act to reduce the price of health coverage, prescription medicines, and energy.
Biden also said it will take more time to bring inflation down.
He continued by saying evidence is mounting that the economic strategy he proposed is producing high-paying jobs and reviving manufacturing in the United States, while lowering prices.
Inflation was 1.4% when Biden took office, as per data from the Bureau of Labor Statistics. Yet, several White House officials tried to spin the July inflation report by saying it was, on paper, 0%.
They also neglected to mention the steadily increasing prices for food, as well as other commodities. Biden informed members of the press the economy had 0% inflation in the July period.
Bad news is for Peasants.
— Epsteins Sheet (@JerseyJoe1234) September 13, 2022
Biden explained while some prices rose last month, others fell by the same amount. Monthly inflation was zero. He noted while people are still suffering, inflation was zero in the prior month.
The White House Report
The White House released a report last week, documenting the Biden administration’s economic triumphs as Democratic candidates prepare for midterms in two months.
The report claimed President Biden is dedicated to tackling these immediate issues without throwing up our economy’s benefits. Gas prices fell more than $1.20 this summer and overall costs in the economy fell somewhat in July.
The document forgot to disclose that gas prices rose from $2.38 per gallon when Biden took office to $3.53 per gallon by the Russian invasion. AAA data shows prices topped $5.00 per gallon in early June and are at $3.71 per gallon.
Although falling gas prices helped moderate year-over-year inflation, Treasury Secretary Janet Yellen conceded Sunday there is a “risk” of a spike this year.
She acknowledged the danger in an interview with CNN. The price cap aims to address this danger. The EU will stop buying Russian oil this winter. They will also restrict tanker services for Russia. This might raise oil prices.