“The Big Money Show” co-hosts Brian Bremberg and Taylor Riggs discuss inflation in the US, the Federal Reserve’s monetary policy decisions, student loan benefits and why the majority of Trump voters are prioritizing family.
President Biden President Trump welcomed Wednesday’s inflation report that showed lower-than-expected price growth in May, but said the cost of living for millions of Americans remains significantly higher than it was before he took office.
The Department of Labour said on Wednesday that the Consumer Price Index, a broad gauge of the cost of everyday items like gasoline, food and rent, was unchanged in May from the previous month. Prices were 3.3% higher than the same period last year. Both figures were lower than the 0.1% and 3.4% month-on-month increases predicted by economists at LSEG.
“While prices remain too high, today’s report marks welcome progress toward lowering inflation, which hit zero on a monthly basis in May and has fallen by nearly two-thirds from its peak,” Biden said in a statement released by the White House.
“Core inflation is at its lowest level since April 2021, food prices have fallen for four consecutive months, and gasoline prices are below $3.50 a barrel nationwide. Wages are rising faster than prices, and the unemployment rate has remained below 4 percent for the longest period in 50 years,” the president continued.
Inflation rose to 3.3% in May, below expectations
Home prices increased 33.9% from January 2021 to May 2024. (FOX Business/Fox News)
Data Source Labor The ministry found that housing costs, energy costs and vehicle maintenance costs have all increased by double digits since January 2021.
According to indexes tracked by the Bureau of Labor Statistics, housing costs are up 21.4% as of May, home prices are up 33.9%, and rents are up 21.4%. Mortgage rates on 30-year fixed loans have skyrocketed from 2.77% in January 2021 to an average of 6.99% as of June 6, 2024, according to Freddie Mac, a staggering increase of 152%.
The Fed’s inflation strategy weighs heavily on middle-class Americans
Energy prices overall are up 35.6% since January 2021. (FOX Business/Fox News)
Gas prices currently average $3.45 a gallon nationwide, down from $3.50 last week as lower demand and increased supply ease the strain on gas stations, according to AAA. But overall, prices today are still 45% higher than they were in January 2021, when it cost $2.38 a gallon to fill up.
Electricity prices have increased by about 29% since Biden took office.
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New and used car prices have increased 20.4% since January 2021. (FOX Business/Fox News)
Additionally, the cost of purchasing a car (up 20.4%), maintaining it (up 30.5%) and insuring it (up 51.3%) are also higher than four years ago.
Biden acknowledged that many families “still feel squeezed by costs of living that are too high.”
Since President Biden took office in January 2021, gasoline prices have increased 45%. (FOX Business/Fox News)
“That’s why I’m fighting to lower costs for hardworking Americans by increasing rental assistance and building two million new homes, taking on Big Pharma to lower prescription drug prices, asking grocery store chains to lower grocery prices despite record profits, and investing in affordable clean energy at a time when record energy production is lowering gasoline prices,” the president said.
He also criticized the Republican Party, accusing them of pandering to “the wealthy and big corporations” with their tax cut proposals and fueling inflation with “blanket tariffs.”
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The Trump campaign responded to the CPI report: New Advertisement On social media, people highlighted that prices have increased under the Biden administration.
“Bidenomics means paying more for less,” the Trump Strategy Office account wrote. “President Trump will fix our economy.”
Fox Business’ Megan Henney contributed to this report.
