There is good financial news for President Joe Biden. On Thursday morning the annual inflation rate dropped to 7.7 percent in October. That was a significant drop from September’s 8.2 percent. In its report, the Department of Labor also indicated that consumer prices were relaxing, which further assists in lowering the inflation rate. The president came through on his promise to help the American people by reducing inflation and preventing a recession.
‘The Inflation Reduction Act will lower costs for families, combat the climate crisis, reduce the deficit, and finally ask the largest corporations to pay their fair share. President Biden and Congressional Democrats have worked together to deliver a historic legislative achievement that defeats special interests, delivers for American families, and grows the economy from the bottom up and middle out.’
Economists have tied the consumer price index (CPI) to inflation, and thus far, it has been the best predictor of moves up or down. And these same economists anticipated the annual inflation rate would move down to 7.9 percent. But the drop to 7.7 percent resulted from President Biden’s actions to move the economy back to an even more palatable rate, The New York Times reported. President Biden’s economic plan has borne out his words.
In October, prices moved up 0.4 percent as per the CPI while economists anticipated 0.6 percent. Minus the costs of energy and food, the rate only moved to 0.3 percent. That meant the CPI dropped to the lowest increase per month since July and 6.3 percent annually.
The question remains what will the Federal Reserve do? It can continue to raise rates or slow down its increases, but it does not have to do either now.
The costs of food, shelter, and gasoline were responsible for most of the inflation prices. Shelter alone was to blame for half of October’s inflation rate. This was important, because most people’s wealth lies within their homes. So Americans have been warned that the CPI for rent or owners will take a couple of months to even out the true cost of housing. And that would be better than the report indicated.
Food costs went up 0.7 percent in September, and then it slowed 0.6 percent in October making the increases a fulsome 10.9 percent this year. However, the degree of increases has been slowing on a downward trend ever since the beginning of this year.
In addition, President Biden’s economic plan has seen a decrease in the price of second-hand trucks and used automobiles, which fell 2.4 percent in October. Energy dropped 1.2 percent, and the cost of clothing dropped 0.7 percent
Christie writes Gloria Christie Reports & Three White Lions Substack newsletters and a Three White Lions podcast available on Apple, Spotify, etc. She is a political journalist for the liberal online newspaper The Bipartisan Report. Written in her own unique style with a twist of humor. Christie’s Mueller Report Adventures In Bite-Sizes a real-life compelling spy mystery (in progress). Find her here on Facebook. Or at Three White Lions her book on Amazon Kindle Vella and the Gloria Christie Three White Lions podcast on Apple, Spotify, etc.
