In response to a new report indicating increased inflation, Vice President Joe Biden said that his administration has achieved "progress" in the fight against rising prices.
According to a study released on Thursday by the Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 8.2% between September 2021 and September 2022. This result exceeded analysts' forecasts in spite of the Federal Reserve's tough policy of contractionary monetary tightening. The month-to-month increase of 0.4% was higher than what market analysts had anticipated, and the core inflation rate of 0.6%, which excludes the more volatile categories of food and energy, was significantly higher than the expectation of 0.4%.
While acknowledging the inflationary pressures, Biden argued that the legislative agenda he has been working on has served to mitigate the damage caused by those pressures.
In a statement, he stated, Even though we still have additional work to do, the report released today demonstrates some success in the fight against increased pricing. However, despite all of this development, prices are still not reasonable. My first aim is to put an end to the worldwide inflation that is having a negative impact on economies all over the world as well as on middle-class households in this country. The United States of America is in a better position than any other large economy to take on this task as a direct result of my economic plan.
Biden has avoided taking responsibility for his administration's involvement in driving up prices by passing many huge spending bills, but he has done it on multiple occasions. According to the Committee for a Responsible Federal Budget, the $370 billion Bipartisan Infrastructure Law, $80 billion CHIPS and Science Act, and $55 billion in humanitarian and military help for Ukraine were authorized in the past two years. The American Rescue Plan is expected to spend $1.9 trillion.
Inflation measured on an annual basis remained virtually constant in September from the rate of 8.3% recorded in the previous month. The decrease in energy prices contributed to a slowdown from the 9.1% inflation rate in June to the 8.5% rate in July; nevertheless, the price of gasoline has subsequently resumed its rising trajectory.
According to the statement, the Inflation Reduction Act, which authorized more than $360 billion in new spending on climate change but decreased overall budget deficits by an amount equal to $240 billion as a result of new tax enforcement, is the measure that will cut prices for prescription drugs and reduce the cost of energy.
Repealing the Inflation Reduction Act is the top objective for Republicans in Congress, who control both chambers. The remark came to a conclusion by saying that it is the absolute incorrect thing to do in this moment. If Republicans were to take control of Congress, the cost of everyday items would actually increase rather than decrease.
As the parting reprimand suggested, the inflation figure for the month of September has immediate ramifications for the prospects of the Democratic party in the upcoming midterm elections. According to a study conducted by ABC News and The Washington Post, the majority of voters who are getting ready to cast their ballots believe the economy to be one of the most important factors on their minds, with 84% of respondents indicating that the economy is the most important aspect. When it comes to faith in the party's ability to handle the economy and inflation, Republicans are more trusted than Democrats by a margin of 16% and 19%, respectively.
In addition to the fiscal policy that the Biden administration has in place, the elevated inflation could indicate more aggressive reactions from the monetary policy. A move that followed two identical hikes in June and July, the Federal Reserve lifted the target federal funds rate by 0.75 percentage points last month in an effort to alleviate heightened inflationary pressures. This move followed two comparable boosts in June and July. Many of the world's most respected economists had harsh words for the central bank because of the authorities' overzealous efforts to curb growing prices.
The preceding is a summary of an article that originally appeared on Daily Wire.