Biden touts cooling inflation, but prices are up sharply from 2021

foxbusiness.com:

Former Reagan economist Art Laffer discusses inflation, recession concerns and the impact of the election on the economy.

President Biden celebrated the December inflation report as a sign of progress in fighting high prices,even as the data suggested the road back to normal could be bumpy.

«We saw prices go down over the course of the year for goods and services that are important for American households, like a gallon of gas, a gallon of milk, a dozen eggs, toys, appliances, car rentals, and airline fares,» Biden said in a statement on Thursday. 

The report showed that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.3% in December from the previous month. Prices overall climbed 3.4% from the same time last year.

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Both of those figures came in higher than expected amid a spike in food, electricity and rent costs, underscoring the challenge of timing high prices in the economy. 

President Biden speaks to guests at Ingeteam Inc., an electrical equipment manufacturer, on Aug. 15, 2023 in Milwaukee, Wisconsin. (Photo by Scott Olson/Getty Images / Getty Images)

Biden acknowledged that «there is more work to do to lower costs for American families and American workers,» and said he would continue to urge large corporations to pass on savings to consumers as their prices ease.

While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains well above the Federal Reserve's 2% goal. And when compared with January 2021, shortly before the inflation crisis began, prices are up a stunning 17.6%. 

INFLATION CLIMBS FASTER THAN EXPECTED IN DECEMBER AS