The inflation rate dipped 0.1 percent in June but the Consumer Price Index (CPI) showed prices have increased 3.0 percent in the last 12 months — still above the Federal Reserve's 2.0 percent goal — while the cost of many common products are still up by double-digit percentages since this month last year.
Core CPI inflation — which excludes more volatile food and energy costs — actually increased last month with prices rising 0.1 percent for an annual advance of 3.3 percent.
Among the costs still rising faster than the headline and core CPI numbers in the last year is electricity (+4.4 percent), transportation services (+9.4 percent), and shelter (+5.2 percent). The biggest drop in annual prices was seen in used cars and trucks, down 10.1 percent in the last 12 months.
While June CPI inflation is at 3.0%, inflation is much higher in many basic necessities:
— The Kobeissi Letter (@KobeissiLetter) July 11, 2024
1. Car Insurance Inflation: 19.5%
2. Transportation Inflation: 9.4%
3. Hospital Services Inflation: 6.9%
4. Car Repair Inflation: 6.0%
5. Electricity Inflation: 5.9%
6. Homeowner Inflation:…
Amid the chaos swirling around him, President Joe Biden is likely to at least attempt to use Thursday's CPI print to claim his economic policies — first "Build Back Better" then rebranded as "Bidenomics" before both terms were largely abandoned after they failed to bolster the president's approval ratings — are working. Americans, however, aren't likely to buy the spin.
Alfredo Ortiz, CEO of Job Creators Network, however, noted that the damage caused by Biden's inflationary policies has already been done. "While inflation remains stubbornly high and 50% higher than the Federal Reserve's target rate, the bigger problem is that today's price hikes compound on the historic 20% increase in prices since President Biden took office," Ortiz said in a statement provided to Townhall. "The cost of a July 4th cookout last weekend was $71.22, compared to $59.50 for the same meal in 2021."
"American families continue to suffer the consequences of an unsustainable cost of living," reminded House Budget Committee Chairman Jodey Arrington (R-TX) in a statement on Thursday. "With only a one tenth of one percent reduction in prices, high inflation continues to persist and plague our economy. Since President Biden took office, his inflation tax has caused overall prices to rise by almost 20 percent," the Texas Republican emphasized. "Americans have less money in their pockets, a lower standard of living and little hope that their economic future will improve. Our nation cannot afford four more years of President Biden," Chairman Arrington warned.
Eyes now turn to the Federal Reserve which earlier in the Biden administration raised interest rates to their highest level since early 2001 in a bid to wrangle inflation caused by massive spending approved by Democrats in Congress and signed by President Biden. Despite predicting that there would be several rate cuts in 2024, none have been made due to inflation's continued pressure. With a slight dip in the monthly headline CPI, some think there may be a glimmer of hope for a rate cut in September — but any overly optimistic rate cut risks extending the pain caused by wage-outpacing inflation.