Biden touts salary increase slower inflation predictions after another wave in costs
Key takeaways:
- President Joe Biden on Thursday touted earnings growth and predictions for more weak inflation even after new information showed that costs are increasing at their most rapid clip in 40 years.
- “While today’s report is elevated, predictors persist in projecting inflation easing substantially by the end of 2022,” Biden stated in a press release.
- Biden’s comments came about two hours after the Labor Department reported that customer costs increased 7.5% from 12 months through January.
Salary increase and weaker inflation:
President Joe Biden on Thursday touted earnings growth and predictions for tapering inflation even after a new report revealed that costs are still increasing at their most rapid clip in 40 years.
“While today’s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022,” Biden stated in a press release. “And fortunately, we noticed optimistic real wage growth the previous month, and restraint in auto prices, which have made up about a quarter of headline inflation over the previous year.”
“We will persist in fighting for prices in places that have held back families and working individuals for decades, from prescription medications to child care and elder care to their energy costs,” he added.
The president’s comments came about two hours after the Labor Department said that costs meeting U.S. customers grew 7.5% in the 12 months through January, the most desirable annualized rate since 1982. Excluding the volatile gas and grocery prices, the CPI increased 6%, compared with the assessment of 5.9%. Core inflation rose at its quickest level since August 1982.
Over the past several months, inflation has evolved into one of the administration’s chief economic concerns: increasing costs at the gas pump and the grocery store chip away at Americans’ wallets. Inflation erodes consumers’ purchasing power without proportional wage boosts and leaves families with lower real incomes.