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Friday, June 14, 2024

US inflation in May. Joe Biden comments

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“I’ve never been more optimistic that our best days are ahead of us,” President Joe Biden said, commenting on U.S. price growth figures released on Tuesday. Inflation fell for the 11th straight month, with the headline CPI at 4 percent in May on an annualized basis. The president admitted that there is still much to be done to bring down inflation, but he argued that his economic plan was working.

“This shows ongoing progress in tackling inflationwhile unemployment remains at historically low levels. Annual inflation is now at its lowest level since March 2021 and more than half the level it was last June,” Biden said in a statement released by the White House.

“After fuel prices and food rose rapidly last year due to war in Ukraineinflation has been falling for 11 consecutive months,” the president added USA.

Consumer spending remains high

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Biden reacted in this way to the statistics on price increases published by the Labor Department. The headline CPI index rose 0.1 percent in May. month-on-month, but fell from 4.9% year-on-year. to 4% in April Core inflation, excluding food and energy prices, amounted to 5.3 percent. Despite a consistent decline over the past 11 months, inflation remains relatively high relative to the Federal Reserve’s target of 2%. As the Washington Post comments, the new data will influence the central bank’s decision whether to make another one interest rate increases. Despite an uninterrupted series of hikes to cool the economy and limit price increases, US unemployment remains low and consumer spending remains high. Biden admitted that there is still a lot of work to be done to bring down inflation, but he argued that his economic plan – including investments in infrastructure and industry, and a reduction in drug prices – it works. “I’ve never been more optimistic that our best days are ahead of us,” he said.

Read also: The Economist: A global recession is inevitable

Main photo source: mervas/shutterstock



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