Biden administration signals Friday inflation data could be high

President Joe Biden addresses infrastructure at the Kansas City Department of Transportation in Kansas City, Missouri, USA on December 8, 2021. REUTERS / Jonathan Ernst

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WASHINGTON, December 9. (Reuters) – President Joe Biden, preparing for another spike in inflation, on Thursday tried to reassure Americans that the rise in prices for energy and other key commodities is starting to decline, but said the change may not be reflected in the data for November. On Friday.

The consumer price index (CPI) for November is expected to rise 6.8% from the same month last year, a Reuters survey of economists showed, surpassing 6.2% growth in October, the fastest growth in 31 years. … More details

“The information to be released tomorrow on the energy sector in November does not reflect today’s reality and does not reflect the expected decline in prices in the coming weeks and months, for example, in the auto market,” Biden said in an unusually lengthy statement released the day before. Friday data.

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Republicans have jumped at the issue to criticize Biden’s broad spending program, and it has put pressure on the president’s approval ratings in recent months.

These claims are not fully substantiated given that inflation is global in nature and the annual inflation rates for many goods commonly purchased by American households, including food, were already at their highest ten years before Biden entered the White House in early this year.

He reiterated that the adoption of his $ 1.75 trillion Build Back Better social spending plan would help lower costs.

Biden’s chief economic adviser, Brian Dees, showed up at a regular White House briefing to convey the same message.

He touted the decline in unemployment to 1969 levels, rising real household incomes and what he called “encouraging signs” for labor force participation, while warning against over-interpreting Friday’s data.

“This data is by definition retrospective and therefore will not reflect some recent price changes, especially in the energy sector,” Deese said, citing a nine-cent drop in gasoline prices in the country.

Deese said gasoline prices in 20 US states are below 20-year averages and more states are expected to join in the coming weeks. According to him, a “very sharp decline” in natural gas prices will also help ahead of the winter heating season.

Deese also noted lower shipping costs and some goods, including wheat and pork, as well as falling wholesale prices for used cars, which should lead to lower consumer prices.

The core November CPI, which excludes volatile food and energy components, is expected to accelerate to 4.9% per annum, up from 4.6% in the previous month, according to a Reuters poll.

Federal Reserve Chairman Jerome Powell said last week that the US central bank needs to be prepared to respond to the possibility that inflation will not fall in the second half of next year, as most forecasters currently expect. More details

Deese declined to predict whether prices would continue to rise next year, but said most independent forecasters had expected inflation to “significantly” decline throughout 2022.

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Reporting by Chris Gallagher and Nandita Bose in Washington; letter from Andrea Shalal; Edited by Alistair Bell and Dan Grebler

Our Standards: Thomson Reuters Trust Principles.

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