Biden hails ‘good news’ that inflation dropped to two-year low
Christian Datoc
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President Joe Biden celebrated the May consumer price index Tuesday that showed inflation falling to a two-year low but vowed to continue fighting to lower prices for “hard working families.”
The May report, published by the Bureau of Labor Statistics, saw annual inflation drop to 4%, down nearly an entire point from the 4.9% rate posted in April.
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May marked the 11th consecutive month in which the CPI decreased, though the personal consumption expenditures price index, the Federal Reserve‘s preferred inflation gauge, rose in April. The May PCE report will be published later this month.
“Today’s report is good news for hard working families. It shows continued progress tackling inflation at the same time that unemployment remains at historic lows. Annual inflation is now at the lowest level since March 2021, and less than half of what it was last June. After gas and grocery prices increased rapidly last year due to the war in Ukraine, inflation has fallen for 11 months in a row,” Biden wrote in a statement Tuesday morning.
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“While there is more work to do, the plan that I laid out a year ago to bring down the cost of living and sustain stable and steady growth is working,” the president said. “We are just getting started. My Investing in America agenda is rebuilding our infrastructure, manufacturing, and supply chains here at home, and creating good-paying jobs. Under my administration, private sector companies have invested over $470 billion in manufacturing, and America is seizing leadership in the industries that will be critical to our economic security for decades, like semiconductors and clean energy. I’ve never been more optimistic that our best days are ahead of us.”
Recent decreases in CPI have been driven in large part by falling energy prices, though core inflation, which factors out highly volatile energy and food prices, has not decreased as quickly. Core CPI registered 5.3% in May, down two-tenths of a point from the month prior. Meanwhile, staple foods, including bread and dairy products, have seen steady, maintained price increases over the past year.