On Wednesday, President Biden discussed a report from the Department of Labor showing that inflation in July continued to stay at the highest level since 2008, calling it a “good monthly report.”
“Today, I’m pleased to share more good news with the American people: The latest report on consumer price shows — prices show that we’ve expanded some easing — excuse me, the expected easing we thought was going to come has increased — that we are — we’ve seen a good monthly report,” Biden said.
“The monthly core consumer price index is down by nearly two thirds from its pace over the past three months,” Biden added. “And when you take out the goods directly impacted by the pandemic, like cars and airplane tickets and month — the monthly core consumer price index has — is less than two tenths of 1 percent.”
According to the Bureau of Labor, the Consumer Price Index soared 5.4% in July from a year earlier, the same rate seen in June and the highest rate since 2008.
“So, here’s where we stand: Jobs are up, and monthly price increases have come down,” Biden claimed. “Economic growth is up to the fastest in 40 years, and unemployment is coming down.”
However, economic growth is not at its fastest in 40 years, but it is at its fastest since last year. Additionally, the unemployment rate decreased every month from its peak in April 2020 to March 2021 – the month Biden’s American Rescue Plan, which raised unemployment benefits and lengthened the timeframe of increased benefits, was offered. The following month, the rate of unemployment increased as the economy added back nearly 750,000 jobs less than expected.
“The United States added 266,000 jobs in April, according to data released by the Labor Department Friday — much worse than the 1 million job gains economists expected and far fewer than the 916,000 jobs added in March, indicating that the long-tepid labor market recovery is slowing down again even as stocks and corporate earnings rip higher,” Forbes reported.
The record-breaking inflation levels have also resulted in workers earning less. According to the Bureau of Labor, “average hourly earnings” increased from $29.37 in July 2020 to $30.54 in July 2021. However, once adjusted for inflation, “real average hourly earnings” have decreased 1.2% during the same time period.
