Biden celebrates inflation index nearing two-year low as recession fears loom
Christian Datoc
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President Joe Biden celebrated Wednesday’s Producer Price Index report as yet “more evidence” his economic plan is effectively combating inflation.
The Bureau of Labor Statistics said Wednesday that PPI in December fell to 6.2% for the year, down from 7.1% the month prior and significantly lower than projected by industry experts.
INFLATION FALLS MORE THAN EXPECTED IN DECEMBER PRODUCER PRICE INDEX
“Today, we received more evidence that we are making real progress tackling inflation and lowering costs, successfully transitioning from a historic recovery to steady and stable growth. The inflation rate for producers fell further, and is now at its lowest level since March 2021,” Biden said in a statement. “This decrease reflected a decline in food and energy prices, bringing real breathing room to working families. And, price increases outside of food, energy, and trade services slowed and are at their lowest level since March 2021.”
The president also noted that consumer spending remains elevated, albeit below levels from earlier in the post-pandemic recovery, a sign of “the transition to steady and stable growth.”
“We are not letting up, and there are even more reasons for optimism this year,” the president concluded. “This month, thanks to my economic agenda passed over the last two years, there will be lower prescription costs for our seniors, tax breaks for lower energy bills, strengthened supply chains, and more good jobs that Americans can raise a family on rebuilding our infrastructure and manufacturing here at home.”
The Biden administration has repeatedly pointed to cooling inflation gauges as a sign that the president and the Federal Reserve’s fiscal policy is working, despite prices remaining significantly higher than their January 2021 levels when the president entered office.
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Still, the strength of the labor market has also allowed the administration to shove off recession fears prompted by the Fed’s rapidly raised interest rates.
BLS showed the economy adding 223,000 jobs in December with new, weekly jobless claims remaining constant.