Biden on US Inflation Indicator Decline: "Progress Confirmed... Through Our Economic Plan"

[Image source=EPA Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden expressed confidence in the U.S. economy on the 26th (local time) as the inflation indicator mainly referenced by the central bank, the Federal Reserve (Fed), showed signs of slowing down, stating that "progress is being confirmed."

President Biden issued a statement immediately after the Commerce Department released the July Personal Consumption Expenditures (PCE) price index, saying, "Last month, incomes rose and overall prices fell. Our economic plan is building the economy from the bottom up and for the middle class," affirming this view.

The July PCE price index released that day fell by 0.1% compared to the previous month. This marks the first time the PCE price index has declined month-over-month since April 2020, early in the pandemic. Compared to the same month last year, it rose 6.3%, but the rate of increase slowed compared to June. This is analyzed to reflect the decline in energy prices such as gasoline.

Following the previously announced July Consumer Price Index (CPI) increase rate, the confirmation that inflationary pressures are easing with the PCE price index has led to a growing market consensus on the peak of inflation.

President Biden said, "Americans are beginning to feel some relief from high prices," and added, "The Inflation Reduction Act (IRA), signed last month, will also help lower prices." He also emphasized, "Oil prices have fallen daily this summer, showing the fastest decline in 10 years." The recent slowdown in inflation indicators is largely attributed to the drop in energy prices, including gasoline.

Meanwhile, on the same day, Jerome Powell, Chair of the Federal Reserve, expressed concerns about inflation at the annual economic policy symposium held in Jackson Hole, Wyoming, confirming that high interest rates will persist for the time being.

This content was produced with the assistance of AI translation services.