WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation as measured by the consumer price index (CPI) on all items increased by 2.9% for the 12 months ending in July—falling below 3% for the first time since March 2021 but still well above the Federal Reserve’s 2% target. Prices overall are up 20.2% since January 2021–start of the Biden-Harris White House.
Core inflation, which excludes volatile energy and food prices, rose at a pace of 3.2% in July from a year prior (down from 3.3%). Inflation in housing (shelter) increased by 5.1% and food by 2.2% over the past 12 months. Real wages increased by just 0.4% for another month.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at IWF, issued the following statement:
“The inflation rate finally dipped below 3% for the first time since 2021 after Joe Biden and Kamala Harris took office. While the elites cheer, most Americans won’t be impressed, because prices are still well above their pre-2021 levels.
“Our economy is splintered into the haves and have-nots. Lower-income Americans feel the brunt of rapid price increases on rent and mortgage payments, even as wealthier households are unscathed. Poor and working-class families spend a larger share of their incomes on basic needs such as food, gas, and rent. They are tired of the painful choices that elevated inflation has forced them to make.
“Look no further than back-to-school shopping. Low-income households will pare back on spending by 4%, and middle-class households by 9% even as parents in the upper crust of society plan to shell out 5% more. If nearly half of America can’t afford a $1,000 emergency, where do we expect parents to find $875 for clothing, shoes, school supplies, and electronics (the average)? Because of Bidenomics, families are making tough choices such as putting aside bills and groceries to buy backpacks and shoes.
“Three-and-a-half years of Bidenomics has left Americans to deal with wearying double-digit price hikes on essential everyday items and a crushing unaffordability crisis. The quality of life for too many households has eroded while their hope for a better financial future is fleeting. Why should they sign up for four years of Kamalanomics, the same policies that got us here?”
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Independent Women’s Forum is dedicated to developing and advancing policies that aren’t just well intended but actually enhance people’s freedom, choices, and opportunities.
Independent Women’s Forum’s Center for Economic Opportunity (CEO) aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.