The White House says prices are “basically flat”, organizes a party to “reduce inflation” while the annual rate stands at 8.3%

On Tuesday, White House press secretary Karine Jean-Pierre insisted that inflation was “essentially flat” and that it was okay for President Biden to host a big celebration of his inflation reduction law, even if the annual inflation remains high at 8.3%.

“Overall, prices have been basically flat in our country over the past two months. This is good news for American families with even more work to do, ”Jean-Pierre said during his regular briefing, just before the big South Lawn party.

Republicans, however, have attacked Biden as “out of touch” for hosting a celebration on behalf of environmental and health spending, noting that inflation remains at its highest level since the early 1980s.

“You Can’t Make It Up: A few hours after this terrible inflation report, the White House is hosting a celebration of ‘reducing inflation’,” Senate Minority Leader Mitch McConnell (R-Ky.) tweeted. “The Democrats have spent our economy in disaster and now they party while families pay. They couldn’t seem further from the world if they tried.

Data for August showed a continued decline in the cost of gasoline driven by demand. But the price of gas was offset by sharp increases in 12 months in the cost of food (+ 13.5%), electricity (15.8%), rent (6.8%) and health insurance. (24.3%).

Biden’s staff have repeatedly entered South Lawn celebrations Tuesday in tweets from his account.

One presidential post on social media said“Exactly four weeks ago, I signed the law on reducing inflation. So today let’s celebrate. Tune in at 3pm ET as I make my remarks and welcome the leaders and supporters who made it possible at the People’s House.”

The conservative group Americans for Prosperity tweeted quote Biden – adding a GIF from the TV show “Schitt’s Creek” ironically agreed with the celebration, noting 12-month increases in the cost of eggs (+ 39.8%), meat (8.8%) and baby food (12.6%).

Jean-Pierre said during his briefing that Biden would be “joined by thousands of Americans” on the lawn “to celebrate the historic act of reducing inflation,” but faced skeptical questions from reporters.

NBC’s Kelly O’Donnell asked Jean-Pierre if there was “any concern that there is a dissonance between the current economic moment and the celebration you are having this afternoon.”

“It’s not about celebrating. It’s about victory for history, victory for America, “said Jean-Pierre.

Republicans have targeted President Biden for hosting a celebration for the Reduction of Inflation Act at the White House, despite inflation remaining high.
AP Photo / Evan Vucci)

“When you see the costs going down for our seniors when you see the costs going down for American families, as I just listed, for energy costs, they’re going to go down and … health care costs are going to go down,” he said. called Jean-Pierre. “This is a great victory – it is a great victory for the American people.”

Republicans and independent analysts say that despite its name, the Inflation Reduction Act will have little short-term positive effects on inflation, which this year rose to a high of 41 years, peaking at 9.1% at June.

Studies from the Penn Wharton Budget Model and the Tax Foundation say the bill won’t lower prices, at least not in the foreseeable future.

The Inflation Reduction Act provides nearly $ 400 billion for environmental programs, including tax credits of up to $ 7,000 for the purchase of electric vehicles and about $ 64 billion to extend the most generous ObamaCare subsidies of the COVID-19 era.

The expense is offset by new corporate taxes, including a new minimum corporate tax of 15%, increased IRS enforcement, and allowing Medicare to negotiate drug prices directly.

Senate Minority Leader Mitch McConnell said Biden and the Democrats are “out of touch” on inflation.
Photo by Shutterstock

Although the 8.3% annual inflation rate in August dropped from 8.5% in July and 9.1% in June, the Bureau of Labor Statistics reported that the new monthly data also included worrying news. as a demand-driven drop in gas prices offset other increases.

“The rise in shelter, food and medical care indices was the largest among many contributors to the broad-based monthly increase of all articles. These increases were mostly offset by a 10.6% drop in the gasoline index, “says the official report.

“The food index continued to rise, rising 0.8% over the month as a home food index [groceries] it increased by 0.7 per cent. The energy index fell 5.0% over the month due to the drop in the gasoline index, but the electricity and natural gas indexes rose. The index for all items minus food and energy [core inflation] it increased by 0.6% in August, a bigger increase than in July “.

The Republican staff of the Ways and Means Commission of the Chamber tweeted Tuesday, “For most low-income households, rising prices have become a source of ‘great financial stress’ as inflation has wiped out the savings of 26 million low-income households since Biden joined. in charge. The so-called “inflation reduction law”, ironically, is bound to make matters worse. ”

“Shopping costs have increased by 13.5% in the last year, a maximum of 43 years!” wrote Rep Vern Buchanan (R-Fla.). “Unsurprisingly, 78% of hourly workers are unsure whether they can afford food in the next two weeks. #Bidenflation is draining Americans’ wallets and savings accounts. Plain and simple. ”

Republicans and some independent analysts say government spending has fueled inflation. A study published in March by researchers at the Federal Reserve Bank of San Francisco said that in the last quarter of 2021, about 3 percentage points of US inflation – or about half at the time – could have been caused by federal spending during the COVID-19 pandemic, including Biden’s $ 1.9 trillion American Rescue Plan Act.

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