President Joe Biden cheered news that a key indicator of inflation fell for the first time in more than two years, saying “it’s clearer than ever” that his economic policies are working.
“This morning we have some good news,” Biden said in a speech Thursday. While consumer prices are still higher than they were a year ago, the pace at which they are rising has slowed every month over the last six months, he noted. “It’s down from 9.1% this summer. Inflation is now at it’s lowest level since October 2021.”
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The overall consumer price index dropped 0.1% from the prior month, marking the largest month-over-month decrease since April 2020, when much of the country was in lockdown due to Covid-19. The report released by the Labor Department on Thursday found overall CPI rose 6.5% from a year ago, the lowest level since October 2021.
Core CPI, which excludes food and energy costs and is the preferred inflation indicator by economists, rose only 0.3% over the last month and 5.7% from a year ago. Both indicators were in line with estimates from economists.
The data is good news for Biden who for months has asked the nation to have faith in his economic plans amid persistent inflation. He reminded Americans of the state of the economy when he entered office.
“The pandemic was raging and the economy was reeling. We acted decisively to put in place a new strategy that would rescue the economy from the pandemic downturn,” Biden said. “At the same time we laid the foundation for a stronger more resilient economy for decades to come. Now, two years in, it’s clearer than ever that my economic plan is working.”
Biden lauded other positive economic indicators like the Labor Department’s jobs report last week which found unemployment at its lowest level in 50 years.
“My first two years in office were the two strongest years for job growth on record,” Biden said. “We still have more work to do, but we’re clearly moving in the right direction and there’s more breathing room in store for American workers and families.