Biden drives the successful lap as inflation cools

U.S. President Joe Biden (CR) attends a meeting with Ukrainian President Volodymyr Zelenskyy on the sidelines of the NATO summit in Vilnius, July 12, 2023.

Andrew Caballero-Reynolds | AFP | Getty Images

WASHINGTON — President Joe Biden celebrated new data on Wednesday that showed inflation cooling faster than expected.

“Good jobs and lower costs: This is Bidenomics in action,” Biden said in a statement. “Today’s report provides new and encouraging evidence that inflation is falling while our economy remains strong.”

The data is positive news for the economy — and also for Biden, who is seeking a second term. A strong economy tends to benefit the incumbent, and slowing inflation could take the sting out of opponents.

The Bureau of Labor Statistics released its June Consumer Price Index report, a popular indicator of inflation, on Wednesday. Year-on-year, inflation rose 3%, the lowest in more than two years.

On a monthly basis, the index, which measures a wide range of prices for goods and services, rose 0.2%. Core CPI, which excludes food and energy costs, rose 4.8% yoy and 0.2% on a monthly basis.

“Real wages for the average American worker are now higher than they were before the pandemic, with low-income earners seeing the largest gains,” Biden said. “Our progress in creating jobs while lowering the cost to families is no coincidence and I will continue to fight for lower costs to families every day.”

Biden’s top economic advisor also echoed the president’s optimism in a speech at the Economic Club of New York on Wednesday.

“Economy is resisting projections that inflation would not fall without significant job destruction,” said Lael Brainard, director of the National Economic Council. “Just today we saw new and encouraging evidence that the US economy is on track for moderate inflation accompanied by a resilient labor market.”

She noted that annual inflation had fallen every month for 12 consecutive months.

“And inflation in the United States is now the lowest among the G-7 countries — both headline and core — even though our economic recovery from the pandemic has been the strongest,” Brainard said.