Biden reacts to another interest rate hike followed by a slowdown in inflation | Bot To News

The consumer price index, a leading measure of inflation in the United States, rose 7.1% in the 12 months ending in November, according to data from the Bureau of Labor Statistics released on Tuesday.

According to the BLS, 7.1% is the lowest inflation since December 2021.

The consumer price index rose just .6% from August to November, after rising 5.2% in the first seven months of the year.

“It will take time for inflation to return to normal as we make the transition to more stable and sustainable growth,” President Joe Biden said Tuesday. “But we may see setbacks along the way. Nothing should be taken for granted. But it is clear that my economic plan is working and we are just getting started.”

In November, inflation rose just .1% as energy prices fell during the month. Commodity prices also fell significantly for the second consecutive month.

Biden mentioned this as the holiday approaches.

“Prices for things like televisions and toys are coming down, and that’s good news for the holiday season. Used car prices are down for the fifth month in a row. New car prices haven’t gone up this month. That savings is significant. Many families. It gives them some breathing room during the holiday season,” he said.

But food prices continued to climb, rising .5% in November. Overall, food prices outpaced other commodities, rising 10.6% year-on-year.

Inflation is falling amid rising interest rates. The consumer price index was 8.2% two months ago and 9.1% in June.

The Federal Reserve has stated that its goal is to reduce inflation to 2%. The Federal Reserve is poised to raise interest rates again on Wednesday, but at a smaller rate than previous rate hikes.

Federal data indicates that wages are beginning to catch up with inflation. Average U.S. wages rose 5.1% over the past year to an average hourly wage of $32.82 in November. Wages rose .6% in November alone, federal data indicated.

Source link