White House Attempts To Boast About Economy Amid Near Record High Inflation

Following the news that inflation remained near the highest level in 41 years, top Biden administration officials are arguing that the United States economy “had 0% inflation” since the Consumer Price Index (CPI) remained unchanged between June and July.

According to a report from the Bureau of Labor Statistics, annual inflation remains close to the highest level in 41 years. In June, annual inflation set a 41 year high of 9.1%, and in July annual inflation fell slightly to 8.5%. The so-called core Consumer Price Index, which excludes volatile food and gas prices, rose 5.9% annually and 0.3% in July.

“We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped,” White House Press Secretary Karine Jean-Pierre wrote on Twitter. “In fact, the current drop in gas prices is the fastest in a decade – saving American families with two cars $106 per month on average.”

We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped.

— Karine Jean-Pierre (@PressSec) August 10, 2022

When President Biden entered office, inflation was 1.4% and the average price per gallon of gasoline was $2.40. In June, the average price per gallon had soared to more than $5 per gallon. Currently, the price of gasoline is about $4 per gallon.

“What’s more: Real wages went up for the first time in almost a year. But we know we have more work to do. Congress should send the Inflation Reduction Act to President Biden’s desk as soon as possible, to lower health care, prescription drug, and energy costs,” Jean-Pierre added.

Over the last year, the real wages of Americans have decreased significantly. According to a separate report from the Bureau of Labor Statistics, “Real average hourly earnings decreased 3.0 percent, seasonally adjusted, from July 2021 to July 2022. The change in real average hourly earnings combined with a decrease of 0.6 percent in the average workweek resulted in a 3.6-percent decrease in real average weekly earnings over this period.”