Just after the annual rate dropped sharply in April to 8.3 percent, President Biden acknowledged on Wednesday that wage growth was stuck at “intolerably high” levels, but he blamed the price increases on the COVID-19 flu epidemic and Russian President Vladimir Putin’s invasion of Ukraine, rather than government spending.
“While it is encouraging to see that annual inflation decreased in April,” Biden said in a statement, “the truth remains that inflation is alarmingly high.”
In March, inflation reached a 40-year high of 8.5 percent. Despite the fact that the annual inflation fell in April, prices rose by 0.3 percent month over month, as reported.
Biden attempted to foreclose the release of the latest inflation figures with a speech on Tuesday in which he attempted to transfer responsibility for the politically divisive subject.
In a statement released on Wednesday, Biden praised a new government effort financed by his $1.2 trillion bipartisan infrastructure program that would give free internet connection to nearly 40% of families and warned that if Republicans win control of Congress, costs will rise.
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“Congressional Republicans speak about inflation, but their only strategy is to raise taxes on struggling parents, taking even more money out of their wallets,” Biden,” says, making reference to a plan offered by Sen. Rick Scott (R-Fla.) that would involve all Americans to pay at least some taxes, despite opposition from other Republicans.
“If they’re serious about fighting inflation, they must send me the bipartisan innovation bill to improve our supply chains and produce more in America, as well as legislation that involves cutting costs & reduces the deficit, lowering families’ prescription medication & utility bills, and restoring fairness to our tax code,” the president added.
According to a study released in late March by academics at the Federal Reserve Bank of San Francisco, government pandemic expenditure may have produced around 3 percentage points of inflation in the fourth quarter of 2021, accounting for nearly half of all rises.
Biden will fly to Illinois on Wednesday to focus on increasing domestic grain production to compensate for lower imports from Russia & Ukraine due to the ongoing conflict in Eastern Europe.
“Today, I’m coming to Illinois to chat with farmers about what more we can do to help them cut their costs and produce more, decreasing food prices for Americans and throughout the world,” Biden said. “While this is progress, the fight against pandemic-related global supply issues and Putin’s rise in costs will continue every day.”
Regardless of the fact that Democrats enacted a $1.9 trillion stimulus program last year without tax offsets or Republican backing, Biden boasted of shrinking government debt. Months later, Congress passed a $1.2 trillion infrastructure strategy, of which the Congressional Budget Office estimates that $256 billion was not paid for.