Former Reagan administration economist Art Laffer spoke on “The Big Money Show” in response to a recent report that consumer prices rose 2.9% in July from a year earlier.
President Biden praised a report Wednesday from the U.S. Bureau of Labor Statistics showing inflation continued to fall in July, but acknowledged that “prices are still too high” as millions of Americans struggle with higher living costs than before. Before Biden took office as president.
The Labor Department said on Wednesday that the Consumer Price Index (CPI), a broad gauge of the cost of everyday items like gasoline, groceries and rent, rose 0.2% month-on-month in July, in line with expectations. Prices rose 2.9% year-on-year, the lowest inflation rate since March 2021.
“While there is still work to do to ease the burden on hardworking Americans, we are making real progress with wages growing faster than prices for 17 consecutive months,” Biden said in a statement released by the White House.
According to Labor Department data, the costs of housing, electricity, auto insurance and eating out have all increased by double digits since January 2021.
Inflation rises to less-than-expected 2.9% in July
Housing costs rose 22.1% in July 2024 compared to January 2021, according to statistics from the Ministry of Labor. (Fox Business/FOX Business)
Housing costs rose 22.1% in July, according to an index tracked by the Bureau of Labor Statistics. Rents rose 0.3% for the month and are up 5.1% from the same time last year.
The cost of eating out increased 22.9% in July 2024 compared to January 2021, according to statistics from the Department of Labor. (Fox Business/FOX Business)
Food prices are up 1.1% from last year, and compared to January 2021, before the inflation crisis began, prices are up more than 21%.
Food prices rose 0.2% last month and are 2.2% higher than the same period last year. The eating out index rose 0.2%, while grocery prices rose 0.1%.
According to statistics from the Ministry of Labor, electricity prices rose 28.5% in July 2024 compared to January 2021. (Fox Business/FOX Business)
Energy prices were stable in July after declining over the previous two months, but electricity prices are currently 28.5% higher than before Biden took office.
Auto insurance rates rose 54.7% in July 2024 compared to January 2021, according to statistics from the Ministry of Labor. (Fox Business/FOX Business)
Although new and used car prices fell in July, car owners are still facing higher insurance costs: Auto insurance rates rose 1.2% in July, and are up an astounding 18.6% from the same time last year.
Since Biden took office, auto insurance rates have increased by a whopping 54.7%.
US home prices hit record high again
Biden acknowledged that “prices are still too high” for many American families.
Biden praised Wednesday’s inflation report as a positive sign of progress but acknowledged more work needs to be done to lower prices for American families. (Al Drago/Bloomberg via Getty Images/Getty Images)
“Big corporations are raking in record profits, but they’re not doing enough to lower prices,” Biden said. “That’s why I’m taking on Big Pharma to lower the price of prescription drugs. That’s why I’m taking on corporate landlords who are raising rents unfairly while cutting red tape to build more housing.”
“And we’re tackling price gouging and junk fees to lower the costs of everyday things, from groceries to air travel,” the president continued.
Biden also attacked Republicans. “I will cut taxes on billionaires and big corporations while raising prices for middle-class families,” he said.
President Trump has criticized the Biden-Harris administration for mishandling the strong economy that the administration inherited from his administration in January 2021. (Michael Ciaglo/Getty Images/Getty Images)
But Trump Asheville, North Carolina, On Wednesday, both Biden and Vice President Kamala Harris, the Democratic nominee for president in 2024, blasted Biden for mishandling the “fast-growing economy without inflation” he left behind in January 2021.
“I gave Harris and Biden an economic miracle, but they quickly turned it into an economic nightmare with country-destroying policies ripped straight out of Kamala’s San Francisco liberal playbook.” That’s what Trump said.
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“Our gas stations, grocery store fronts and mortgage payments are paying the price for Kamala’s liberal extremism,” the former president added.
Fox Business’ Megan Henney and Chris Pandolfo contributed to this report.
