The U.S. Bureau of Economic Analysis released its June Personal Consumption Expenditures (PCE) price index on Friday morning, and it showed that — despite some slowing to price increases — inflation remains well above the goal set by the Federal Reserve chaired by Jerome Powell.
Compared to May's print of the PCE price index, the report showed a monthly increase of 0.1 percent despite a 3.9 percent decrease in energy prices. Over the past 12 months, prices have increased 3.8 percent despite a 13.4 percent drop in energy prices since this month last year.
Excluding volatile food and energy prices, the monthly increase clocked in at 0.3 percent for a 4.6 percent annual increase — more than double the Fed's goal of two percent inflation.
May PCE #inflation +3.8% year/year vs. +3.8% est. & +4.3% in prior month; core PCE +4.6% vs. +4.7% est. & +4.7% prior pic.twitter.com/LDcxlhtdwq
— Liz Ann Sonders (@LizAnnSonders) June 30, 2023
"Inflation remains stubbornly high, punishing ordinary Americans and small businesses," observed Job Creators Network CEO Alfredo Ortiz. "The prices of goods and services are rising at about twice the Federal Reserve's target rate."
"While the inflation rate is coming down, it's important to remember that inflation compounds and is still escalating from a much higher base," Ortiz reminded. "Seniors and those living on fixed incomes are hit especially hard as they see the value of their dollars destroyed. This ongoing high inflation is a direct consequence of Democrats' reckless spending and 'Bidenomics,'" Ortiz noted.
House Budget Committee Chairman Jodey Arrington (R-TX) contrasted the current economic reality with the Biden administration's baseless bragging. "Working Americans continue to suffer from high inflation in spite of the spin from the White House that our economy is improving," he said in a statement Friday.
"Today’s report marks the sixth month in a row with effectively no positive change to core inflation," Arrington explained. "It is clear, the President’s taxing, spending, and borrowing has led to record inflation, interest rate hikes, and a bleak economic outlook which is why only one out of three adults in the U.S. approve of Biden’s handling of the economy."
The "only way" to remedy lasting inflation's burden on American families? "Stop the unbridled federal spending, taxes, and regulations and return to pro-growth policies that encourage work and investment," said Arrington.