After bragging just four weeks ago that the economy had "zero percent inflation" in the month of July (looking at cherry picked month-over-month figures which completely ignored the highest food price inflation since 1979), President Biden issued yet another insultingly stupid statement in response to Tuesday's extremely hot CPI print which sent markets into turmoil and rate hike expectations shooting higher.
And so just minutes after markets began puking in response to today's CPI, Biden claimed that "Today’s data show more progress in bringing global inflation down in the US economy," adding "Overall, prices have been essentially flat in our country these last two months."
Of course, as we noted earlier when one looks behind the curtains - this is the 27th straight month of rising inflation, including a particularly painful 11.4% increase in the food index YoY - its largest 12-month increase since the period ending May 1979. The 'food at home' index rose 13.5%, its largest 12-month increase since the period ending in March 1979.
And - to be expected, Biden is cherry-picking the least moldy strawberry out of the basket - bragging that "Gas prices are down an average of $1.30 a gallon since the beginning of the summer" (thanks to the admin draining our strategic petroleum reserve). Yet, it's still up 76% from when Biden was elected.
Biden also claims that "real wages went up again for a second month in a row," when in fact they are down for 17 straight months on a YoY basis.
And now - just four weeks after bragging about "zero inflation," Biden says "It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy. "
JPMorgan Chase President Daniel Pinto helped with damage control on Tuesday, saying in a post-CPI statement that US consumers are in a "very very good place," despite revolving consumer credit card balances increasing (and personal savings as a % of disposable income dropping).
As Bloomberg notes, Tuesday's report may have hobbled Democrats going into midterms.
Falling gas prices and two major legislative victories have boosted Democrats’ once improbable bid to retain their House and Senate majorities in the November midterms. So had early signals that red-hot inflation may be easing. But Tuesday’s price growth report will dampen Democrats’ hopes that the worst may be behind them. -Bloomberg
And as Bloomberg further notes, Biden's 'strategy' may also be upended by "the possibility of a rail strike that could snarl supply chains, disrupt agricultural deliveries and cost the US economy more than $2 billion a day. The Biden administration is pressuring labor unions and freight-rail operators to agree on a new contract before a Friday deadline."