January CPI Rises 6.4%
Biden "It's Time to Finish the Job"
Emphasizes Economic Performance... Laying Groundwork for Reelection Bid
[Asia Economy Reporter Kwon Haeyoung] As the US Consumer Price Index (CPI) for January was announced, President Joe Biden stated on the 14th (local time) that "US inflation continues to decline, which is good news for every household and business." Meanwhile, the US Republican Party fiercely criticized the same indicator, calling it 'Bidenflation,' arguing that the inflation slowdown trend has weakened.
President Biden said on the day, "Today's data confirms that annual inflation has fallen for seven consecutive months," reiterating the achievements of his economic policies.
The US Department of Labor announced that the January CPI rose 6.4% compared to the same period last year. Although this is a decrease from the 6.5% increase in December last year, it is higher than Wall Street's forecast of 6.2%. Looking at the month-to-month increase rate, it actually rose by 0.5%, which is a larger increase than December's 0.1%.
President Biden mentioned that gasoline prices have fallen from their peak and that the unemployment rate is the lowest since 1969. He emphasized, "There is still more work to be done to transition to steady and stable growth." Highlighting the importance of reducing living costs, rebuilding supply chains, and investing domestically in the US, he also underscored the significance of enforcing the Inflation Reduction Act (IRA). In particular, he pointed out that the Republican proposal to repeal the IRA would increase deficits and worsen inflation by giving billions of dollars to large pharmaceutical companies.
He stated, "Today's statistics emphasize that we are making historic progress, are on the right path, and now need to finish the job." This highlights the economic achievements of the past two years and is interpreted as laying the groundwork for his reelection bid. President Biden's phrase "finish the job" is recognized as a slogan for his 2024 reelection campaign. He also mentioned this several times during his State of the Union address on the 7th.
On the other hand, the Republican Party focused on the weakening of the inflation slowdown compared to the previous month and launched fierce attacks on the Biden administration. Jodey Arrington (Republican, Texas), chairman of the House Budget Committee, criticized, "Biden's economy is making it harder for working families who struggle to pay their utility bills." Regarding the cause of inflation, he pointed out, "It is because President Biden refuses to change his spending habits and refuses responsible debt ceiling negotiations with the Republicans." Jason Smith (Republican, Missouri), chairman of the House Ways and Means Committee, also called it "an opportunity to find common-sense solutions to eliminate wasteful spending that fuels inflation," demanding government spending cuts related to the debt ceiling negotiation issue.
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