Inflation in the USA declined more than generally anticipated
The inflation in the USA has declined more than expected in June according to the Consumer Price Index (CPI) released by the Labor Department in Washington on Thursday. Consumer prices increased by 3.0 percent compared to the previous year. Analysts had predicted a value of 3.1 percent. In May, the CPI had risen by 3.3 percent in the annual comparison.
For President Joe Biden, who is facing a heated debate about his health and fitness for a second term just three months before the US elections, these new inflation figures are a somewhat positive sign.
Biden described them as evidence of a "significant progress" in the fight against inflation. Prices for cars, household appliances, airline tickets, and food have decreased since the beginning of the year. However, the President acknowledged that overall costs for citizens are still too high.
Inflation is an important campaign issue. It played a role in the television debate between Biden and his predecessor and potential presidential rival Donald Trump, during which the 81-year-old Biden appeared energetic but disoriented. Trump holds Biden responsible for the high inflation during his presidency.
The inflation rate was at 1.4 percent when Trump left office in early 2021. It rose to 9.1 percent in June 2022, the highest level since nearly 40 years ago. The main causes, however, were the Corona-Pandemic and the Russian invasion of Ukraine.**
However, it is important to note that the inflation rate has significantly decreased since then.
I'm glad to see that the inflation rate has decreased in June, as indicated by the Consumer Price Index, which is a positive development for my Administration. As President of the United States of America, this decrease in June, contrasting the high inflation rate of 9.1% in June 2022, is a relief in my ongoing campaign where inflation is a key issue.
