Unexpectedly High US Inflation: Biden Says "That's Why We Have the Inflation Reduction Act"

[Image source=EPA Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] With the US inflation indicators exceeding expectations ahead of the midterm elections in November, on the 13th (local time), US President Joe Biden once again emphasized the importance of his major legislative achievement, the 'Inflation Reduction Act (IRA)'. It appears he is trying to mitigate concerns that inflation issues might hinder the Democratic Party and himself in the midterm elections.

According to the White House, President Biden said after the Consumer Price Index (CPI) announcement that "more time is needed to solve the inflation problem," adding, "This is why we passed the Inflation Reduction Act, which can lower healthcare, prescription drug, and energy costs."

He evaluated, "Today's statistics show further progress in reducing inflation in the US economy," and said, "There is more work to do, but this is welcome news for American households." He also noted, "Compared to the start of summer, gas prices have dropped by $1.3 per gallon, and grocery store price increases have somewhat slowed," adding, "Meanwhile, real wages have risen for two consecutive months, giving hardworking American families some breathing room."

This statement came after it was confirmed that US inflation was more severe than expected in the August CPI. The announced August CPI increase was 8.3% year-over-year, slowing from June (9.1%) and July (8.5%), but exceeding market expectations (8.0%). Especially, the core CPI, which excludes the volatile energy and food sectors, rose 6.3% year-over-year.

Ahead of the midterm elections, wary of the spread of inflation accountability, President Biden emphasized, "My economic plan shows that we can lower prices while creating quality jobs and reviving manufacturing." Inflation is considered one of the top concerns of the public before the elections.

Meanwhile, as concerns over inflation grew, the New York stock market showed a sharp decline just before the afternoon close. The Nasdaq index, centered on tech stocks, fell about 4.9%. The Dow Jones Industrial Average, composed of blue-chip stocks, dropped more than 1,200 points.

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