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The New York Times, The Washington Post and more reported Tuesday that August inflation figures remained “stubbornly high” despite fall in gasoline prices, as the price of groceries rose 0.7%.
The Times reported that the price increases did not “mode down as much as anticipated in August, unwelcome news for the Biden administration and the Federal Reserve and a sign of the extent to which rapidly rising costs continue to weigh on consumers.”
Economists had forecast inflation to decline between July and August, but it rose 0.1% monthly.
“While gasoline prices and used car and truck costs have started to decline, other prices are rising fast enough to fully offset those declines: Prices were up 0.1 percent in terms over the course of the past month, as prices for restaurant meals, rentals and new vehicles picked up,” the New York Times report said.
Inflation rose 8.3% in August from last year. In July, inflation rose 8.5%.
“Several economists had been hopeful that the drop in energy prices in recent weeks would be enough to finally cool inflation, but government data released on Tuesday showed how large price increases continue to persist in basic items that constitute a central part of most family budgets, said the Washington Post’s report on the inflation numbers.
The report noted that the headline figure of 8.3% was “higher than expected given the sharp decline in gasoline prices in recent weeks.”
The Associated Press and NBC News described the August figures as “stubbornly high” or “stubbornly high.”
“U.S. inflation slowed for the second month in a row due to a sharp drop in gasoline prices, but excluding energy, most other items rose in price in August, a sign that inflation remains a heavy burden for American homes,” the AP report said.
Biden issued a statement after the inflation numbers were released, saying “overall, prices have been essentially flat in our country over the last two months.” He added that there was more work to be done and “some price increases” slowed “from the previous month at the grocery store.” Food prices increased 11.4% from last year, according to the report, which is the highest increase since 1979.
The media also pointed to the “political role” that inflation is playing in the midterm elections. “Inflation Report Halts Biden Attempts to Celebrate Economy,” read a New York Times headline.
washington post he suggested that Americans were feeling better about the economy because of falling gasoline prices. “Lately, inflation has been losing some steam among voters,” the report said.
“However, signs that inflation may have peaked, or will soon, could boost Democrats’ prospects in the midterms and may have already contributed to slightly higher public approval ratings for Biden. . In his speeches, Biden has generally failed to refer to the impact of high prices on family budgets,” the AP said.
Biden, during remarks on Monday at Boston’s Logan International Airport, hailed the drop in gasoline prices and said they were seeing “hopeful signs” that inflation was slowing.
“I said last spring that our top economic priority was to reduce inflation without giving up all the gains American workers have made in the last year. But there is more to be done, much more to be done. The American people must have confidence that we are on the right track, that we’re seeing real progress,” he said.