President Biden said Tuesday that inflation is showing signs of slowing down, despite a government report showing consumer price increases for household goods persist and dent families’ budgets.
Mr. Biden’s remarks came shortly after the Labor Department said prices were up 8.3% in August, compared to 12 months earlier. The increase is higher than analysts had predicted, given the drop in gas prices over the past few months.
The Consumer Price Index rose 0.1% in August over July, according to the Bureau of Labor Statistics. The annual inflation rate of 8.3% was down slightly from 8.5% in July and 9.1% in June when it reached a 41-year high.
Core CPI, which excludes food and energy costs, increased 6.3% in August from a year earlier. That was up sharply from the 5.9% rate in both July and June.
Mr. Biden cast the slight decrease as a win against inflation, even if the Labor Department’s report does little to reassure consumers that prices might be easing.
“Today’s data shows more progress in bringing inflation down in the U.S. economy. Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families with more work still to do,” Mr. Biden said in a statement.
While he touted that gas prices have decreased over the summer, he acknowledged that more must be done to tackle persistent inflation. The president pledged that his $430 billion climate, tax, and healthcare bill, which he signed into law last month, will curb rising prices.
Mr. Biden later Tuesday will host an event at the White House to celebrate the passage of his bill, which Democrats titled the Inflation Reduction Act.
“It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs, and energy,” he said.