US inflation figures are still bad news for the Biden administration as prices have failed to move in the direction the White House had hoped.
Inflation rose 8.3 percent in the 12 months to August, worse than the 8.1 percent increase analysts had expected, prompting negative reactions in markets and President Joe Biden's economic record.
But the CPI, which measures the price of a basket of goods and services, rose just 0.1 percent in August after remaining flat in July. It has been held up by the White House as a measure of limited success.
"Overall, prices in our country have remained essentially flat over the past two months. This is welcome news for American families. There is still work to be done," Biden said in a statement.
This is according to White House press secretary Karin Jean-Pierre, who told reporters at a press conference that overall prices have been "flat in our country these past two months." Congressman Lauren Bobert (R-CO) jumped on the "flat" claims, calling the review "elite."
"Worst press secretary in the history of press writers, Karin Jean-Pierre, for the last two months you seem to have dropped prices in our country," Boebert tweeted. "Of course KJP doesn't come out of its elitist bubble.
Try grocery store, K." There is little hope that America's livelihood crisis will subside substantially, at least in the short term.
So who's on top of inflation here: the Biden administration or Boibert?
The prices of goods and services have risen recently, but that's not what Jean-Pierre or the White House is referring to.
Each month, the Bureau of Labor Statistics releases CPI figures, which measure changes over time in the "urban consumer" market basket for consumer goods and services. It is commonly used as an indicator of inflation.
The most recent figures for August 2022 show that CPI inflation (commonly referred to as inflation) rose by 8.3 percent in 12 months. In other words, the prices in the CPI basket of goods and services increased by 8.3 per cent over the corresponding period of the previous year.
Inflation continued to rise in 2022, reaching 9.1 per cent in June. It fell to 8.5 per cent in July and again to 8.3 per cent in August. Inflation has not fallen below 8.3 per cent since February 2022.
However, month-on-month, the CPI rose just 0.1 percent between August and July and remained unchanged between July and June. This measure compares price changes over a month.
So, when the White House says that prices have been "essentially flat" for the past two months, it means that prices (as measured by the CPI) haven't changed significantly over that period.
Accordingly, Bobbert's attack on Jean-Pierre and the White House falls short. Inflation has risen sharply over the past year, and while inflation has generally risen a year or two ago, it has remained more or less flat over the past two months.
Still, Boibert's tweet has a point. While the White House welcomed the flat monthly CPI data, it was supported by a series of declines in oil prices. Food prices continue to rise.
So Boibert's "try the grocery store" suggestion is backed up by CPI analysis - the data showed a 0.8 percent monthly increase for food in August. Although the price at the gas pump may have improved, the cost of feeding a family is still rising and causing financial pain for many Americans.
Inflation, excluding food and fuel, rose 0.3 percent month-on-month in July, pointing to additional pressures in the economy. In his speech, Biden acknowledged that there is "more work to be done" on inflation.
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