President Biden says US experienced ‘zero’ inflation in July
Joe Biden said Wednesday at the White House that there was zero percent inflation last month while urging Congress to pass the Inflation Reduction Act.
CNN and an Axios economics correspondent came under fire Wednesday for respectively suggesting that inflation "took a breather" in July and that it was a "huge relief" for Americans despite rising 8.5% from last year.
While it was a decrease from the 9.1% headline inflation number in June, prices still remain historically high compared to a year ago. "US inflation took a breather in July, thanks to the falling cost of food and gas, as consumer prices grew at a slower pace than in previous months," CNN's tweet said.
The story's headline also said that consumer prices "took a breather" in July, and it was "fueling hopes" that inflation hit its peak.
While the price of gasoline came down, likely having the biggest impact on the headline inflation number, other prices continued to climb.
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People shop in a supermarket as rising inflation affects consumer prices in Los Angeles, California, U.S., June 13, 2022. REUTERS/Lucy Nicholson (REUTERS/Lucy Nicholson)
The food index rose 1.1%, making the 12-month increase 10.9%, which is the highest since May 1979.
Executive Editor for NewsBusters Tim Graham said the characterization by CNN was "embarrassing."
The Twitter account for the House Republican Policy Committee also slammed the tweet. "Breather?" they wrote, adding that American families "are still seeing near record high for food and energy."
Ted Cruz aide Steve Guest called out the outlet for "celebrating 8.5% inflation." He included a screenshot of a push notification from CNN, which used the same language as the tweet.
"Talk about out of touch," he said.
Grocery store shoppers in a Washington, D.C. suburb (Fox News Digital)
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"If you discount the still-rising price of groceries, electricity, and rent and look only at the commodities suffering from declining demand because they're too expensive, things are looking good!" Commentary Magazine editor and MSNBC contributor Noah Rothman said.
"Ruthless" podcast host Josh Holmes criticized CNN's headline as well, saying "holy cats that's terrible."
Axios economics correspondent Neil Irwin also tweeted Wednesday that "July was a huge inflation relief month for American consumers."
The Heritage Foundation's John Cooper responded to Irwin with a tweet listing price increase percentages for food, gas and airfare.
White House Assistant Press Secretary Emilie Simons responded to Irwin's tweet as well, praising the 0% inflation increase in the one-month period from June. She also acknowledged there was "more work to do."
"But we're on the right track," she said.
President Biden signs two bills aimed at combating fraud in the COVID-19 small business relief programs Friday, Aug. 5, 2022, at the White House in Washington. (AP Photo/Evan Vucci, Pool)
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"Before I begin today, I want to say a word about news that came out today relative to the economy. Actually, I just want to say a number: Zero," President Biden said on Wednesday, referring to the month-to-month inflation increase from last month.