President Biden welcomed Wednesday's inflation report that showed prices rose less than expected in May, but the cost of living for millions of Americans is still much higher than it was before he assumed office.
The Labor Department said Wednesday that the consumer price index, a broad measure of how much everyday goods like gasoline, groceries and rent cost, was unchanged in May from the previous month. Prices climbed 3.3% from the same time last year. Both of those figures are lower than the 0.1% monthly increase and 3.4% headline gain forecast by LSEG economists.
"Prices are still too high, but today’s report shows welcome progress on lowering inflation, which was zero on a monthly basis in May and is down 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, grocery prices have fallen for four months in a row, and gas prices are below $3.50 on average across the country. Wages are rising faster than prices, and unemployment has remained at or below 4% for the longest stretch in 50 years," the president continued.
INFLATION RISES 3.3% IN MAY, LESS THAN EXPECTED
Data from the Labor Department confirms that housing expenses, energy and vehicle maintenance costs have all increased by double digits since January 2021.
As of May, shelter costs are up 21.4%, home prices have increased 33.9% and rent is up 21.4%, according to indexes tracked by the Bureau of Labor Statistics. Mortgage rates on a 30-year fixed loan have shot up to an average of 6.99% as of June 6, 2024, from 2.77% in Jan. 2021 — a whopping increase of 152%, according to Freddie Mac.
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Gas prices are currently sitting at a national average of $3.45 per gallon, down from $3.50 last week as low demand and increasing supply provide relief at the pump, AAA said. But overall, today's prices are still 45% more expensive than in Jan. 2021, when it cost $2.38 per gallon to fill up.
Electricity costs are up about 29% since Biden took office.
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It also costs more to buy a car (20.4% increase), maintain it (30.5%) and insure it (51.3%) than it did four years ago.
Biden acknowledged that many families "are feeling squeezed by the cost of living, which is still too high."
"That is why I am fighting to lower costs for hardworking Americans by increasing rental assistance and building 2 million new homes; taking on Big Pharma to lower prescription drug prices; calling on grocery chains making record profits to lower grocery prices; and investing in affordable clean energy while record energy production is lowering gas prices now," the president said.
He also took a shot at his opposition, accusing Republicans of catering to "the wealthy and large corporations" with tax cut proposals and supercharging inflation with "across-the-board tariffs."
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The Trump campaign reacted to the CPI report with a new ad on social media that highlighted how prices have increased under Biden's watch.
"Bidenomics means you pay MORE for LESS," the Trump War Room account wrote. "President Trump will RESTORE our economy."
Fox Business' Megan Henney contributed to this report.
