President Joe Biden listens as he meets virtually with infant formula manufacturers from the South Court Auditorium on the White House complex in Washington, Wednesday, June 1, 2022. (AP Photo/Susan Walsh)
OAN Newsroom
UPDATED 1:54 PM PT – Wednesday, August 10, 2022
The Consumer Price Index report for July shows inflation is up 8.5 percent from a year ago. The Labor Department released the report Wednesday, indicating inflation cooled down from 9.1 percent in June.
The CPI measures a range of prices for a typical basket of goods, excluding food and energy because those prices are more unstable. The report suggests inflation still remains near its highest levels in more than 40-years. The Federal Reserve has signaled it will continue to raise interest rates, while many economists say the US is in a recession.
Meanwhile, Biden claims the US inflation rate is zero as he tries to promote his failed “borrow and spend” policies. While talking to reporters at the White House Wednesday, he cited month-on-month inflation data and then claimed his economic plan “is working.”
Ridiculous BS from the White House.
There’s 8.5% inflation and basically everything anyone ever buys went up in price.
This is just cruel gaslighting from the Biden admin. https://t.co/zbwGOE04XD pic.twitter.com/pejS2fAdsp
— Ted Cruz (@tedcruz) August 10, 2022
Although core inflation slowed from 9.1 percent in June, economists say the crisis continues.
“The real issue though is core inflation has been moving up,” stated Gary Schlossberg, Global Strategy at Wells Fargo Investment Institute. “We do think as the recessions deepens around the turn of the year in 2023, that does create a headwind for that the core rate though and we do see that core rate coming off.”
Experts also said inflation is slowing because of a decline in economic activity amid ongoing recession. However, contrary to Biden’s claims, the inflation rate still remains very high.
Former Clinton-era Treasury Secretary Larry Summers is also warning against attempts to downplay the inflation crisis. In an interview Wednesday, he said the Labor Department’s latest measure of inflation is encouraging, but risks of a broader economic crisis are still very high.
Former Clinton Treasury Sec. Larry Summers: “We have a very serious inflation problem”
“We’re likely to have some quite turbulent times ahead” pic.twitter.com/luFbaIXHiW
— RNC Research (@RNCResearch) August 10, 2022
Despite Biden’s claim of zero inflation, Summers said a number of macro-economic indicators is pointing to structural problems that may get worse “with a horizon of two years.”