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Biden says 'more time' needed to lower inflation as prices rise

(Bloomberg) – The latest U.S. inflation data shows “progress” in efforts to curb rising prices, but the White House says there’s more to come after lower-than-expected data put fresh pressure on the Fed Work to be done in reserve.

Headline consumer prices rose 0.1% in August, above the forecast decline of the same figure. Core inflation, a measure that strips out volatile fuel and food costs and is closely watched by the Federal Reserve, rose 0.6%, double expectations. Year-on-year inflation fell to 8.3% for the second straight month, but also beat expectations of 8.1%.

In a statement, Biden sidestepped the monthly spike in core inflation, pointing instead to elements in the data that suggested top-line inflation was “basically flat” and hailed lower natural gas prices.

“Today’s data shows that the U.S. economy has made more progress in reducing global inflation,” Biden said. “It will take more time and determination to lower inflation.”

Later Tuesday, Biden will host a celebration of the Inflation Reduction Act, a law passed by Democrats last month, Its effects will take years to take effect. sink completely into it. The White House event was scheduled to take place a few weeks ago, at a time when U.S. gasoline prices have steadily fallen, from a national average of $3 a gallon to $3 a gallon. 71 June $5. 02.

READ MORE: Biden Plans To Talk About The Reality Of Vigorous Inflation In The Economy

That drop, though, was offset by price increases elsewhere, including housing costs. The latest data shows that Biden still faces economic headwinds – which is sure to cement the Fed’s commitment to keep raising interest rates to keep prices in check. With the midterm elections now less than two months away, Democrats are expected to retain control of at least one of the House of Representatives in the midterm elections, after polls earlier this year showed both lost.

While the drop in gasoline prices has tempered what would have been hotter price growth, Biden isn’t out of the woods either — U.S. officials also worry that a rebound in oil prices could begin later this year if The EU sanctions come when they are not accompanied by other measures, such as a price cap on the purchase of Russian oil.

©2022 Bloomberg LP

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