As the Biden administration prepares to celebrate history on the South Lawn, the biggest news of the day is already starting to resonate in the White House. Consumer Price Index data provided the latest evidence that inflation has cooled, with clear positive signs on both a year-over-year and month-to-month basis.
President Joe Biden In a speech at the White House on Tuesday morning, he called the latest data “welcome news”, expressing cautious optimism that the administration’s most pressing economic challenge is beginning to show tangible signs of easing.
Biden said the numbers “provide reason for some optimism for the holiday season and I think next year.” Still, the president acknowledged that prices were “still very high” and suggested that it would “still take time” for levels to return to normal.
However, Biden pointed to lowering gasoline and food prices as a sign that the economy is “moving in the right direction”.
While Biden acknowledged that “it will take time for inflation to return to normal levels”, he warned there could be “setbacks along the way”. The president later told reporters he hoped prices would stabilize “by the end of next year”, but warned, “I can’t make that prediction.” [prices are] won’t go up any more”.
White House officials acknowledge that they still have a long way to go and that inflation is still historically quite high. But the new data follows a slew of positive economic news and points to a strong data point that sweeping price increases are starting to slow on a tangible basis, with the Federal Reserve expected to trigger further rate hikes on the same day.
Particularly encouraging for White House officials: the November CPI report, released on Tuesday, Fifth consecutive month decline in US inflation.
This came spurred by several areas where officials have seen prices moderate in recent weeks, including gasoline, car and airline prices. While no White House official has made it clear that he believes inflation has peaked, along with other signs of economic progress, including continued strength in the labor market and strong GDP growth, the White House believes the current mood of cautious optimism is valid. to hold.