“The Big Money Show” co-host Brian Bremberg breaks down the latest inflation data and discusses California’s $20 minimum wage hike.
President Biden Though prices remain uncomfortably high for millions of Americans, the U.S. government celebrated a victory on Thursday after inflation fell to its first decrease in four years.
The U.S. Department of Labor said the Consumer Price Index (CPI), a broad gauge of the prices of everyday items such as gasoline, groceries and rent, fell 0.1% from the previous month in June, the first monthly decline since May 2020. Prices are up 3% from the same time last year.
“Today’s report shows that we are making great progress in fighting inflation. Overall prices were steady in May but fell last month, bringing core inflation to its lowest level in more than three years. The prices of autos, appliances and airfares are down, and food prices are also down since the beginning of the year,” Biden said in a statement released by the White House.
“Because of my economic plan, wages are growing faster than prices, 15.7 million jobs have been created and communities left behind by my predecessor are making a ‘remarkable comeback,'” he added.
Inflation unexpectedly falls to 3% in June
A timeline of US inflation rates from President Biden’s first term through June 2024. (FOX Business/Fox News)
The inflation report is some welcome relief for Biden, who has faced calls from members of his party to withdraw from the 2024 presidential race after his disastrous debate defeat with former President Trump last month. But the Democratic president acknowledged that “prices are still too high,” with food and housing costs far higher than when he took office in January 2021.
According to data from the Bureau of Labor Statistics (BLS), rent prices were 21.9% higher on average in June 2024 compared to January 2021. The average sales price of a home also increased 29.3%, from $396,900 in the fourth quarter of 2020 to $513,100 in the first quarter of 2024, according to the Federal Reserve Bank of St. Louis.
Shelter prices increased by 21.6% from January 2021 to June 2024. (FOX Business/Fox News)
According to the BLS, food prices overall are up 21.5%, with the cost of eating out increasing by about 22.7% on average.
Pantry staples like eggs, milk, butter, and flour have all risen in price. In January 2021, a dozen eggs cost $1.47. Now, the average price for that dozen is $2.72, a whopping 85% increase.
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Egg prices increased 85% from $1.47 per dozen in January 2021 to $2.72 per dozen in June 2024. (FOX Business/Fox News)
In a statement, Biden blamed greedy corporations that are making record profits for rising prices.
“Big companies are making record profits and they need to do more to lower prices. I’m fighting to give families more money by challenging Big Pharma to cap insulin at $35 a month, Big Oil to lower prices at the pump, and Wall Street to make the wealthy pay their fair share,” Biden said.
Butter prices increased 29.1% from $3.64 per pound in January 2021 to $4.70 per pound in June 2024. (FOX Business/Fox News)
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He accused Republicans of “only thinking about themselves” and claimed that if elected, they would cut taxes for the wealthy and “reignite” inflation.
Milk prices increased 14.1% from $3.47 per gallon in January 2021 to $3.96 per gallon in June 2024. (FOX Business/Fox News)
Rep. David Schweikert (R-Ariz.), vice chairman of the Joint Economic Committee, called the inflation report “a step in the right direction” but said it doesn’t change the fact that prices remain high under the Biden administration.
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“Even after adjusting for inflation, workers still earn less per week than they did three and a half years ago, and inflation has remained above the Fed’s 2 percent target for 39 consecutive months,” Schweikart said.
He added, “The Biden Administration has pumped trillions of dollars into reckless spending, raised interest rates, and exacerbated inflation by stifling economic growth. It’s clear that the current Administration’s economic policies will not bring relief to families anytime soon.”
FOX Business’ Megan Henney and Brian Bremberg contributed to this report.
