The United States hits a "significant milestone" in the fight to bring down inflation, and President Joe Biden acknowledged this positive development in a statement released on Friday.
In his statement, Biden highlighted the achievement of maintaining inflation at the 2% level over the past six months.
"Today marks a significant milestone with inflation over the last six months at the pre-pandemic level of 2 percent. Americans have seen their income grow by 3.7 percent over the last year, after adjusting for inflation," the president noted.
Joe Biden Sense of Accomplishment Over Fall in Inflation
Joe Biden's remarks reflected a sense of accomplishment, considering the challenges caused by elevated inflation rates. However, he noted that it is not time to rest.
"But make no mistake: while my economic plan is getting us back on track, our work is far from finished. Prices are still too high for too many Americans, and I know the strain that can put on hardworking families," Joe Biden said.
"That's why I'm laser focused on lowering costs-from bringing down the price of insulin, prescription drugs, and energy, to addressing hidden junk fees companies use to rip you off, to calling on large corporations to pass savings on to consumers as their costs moderate," he added.
Inflation Falls, Prices Fell
The Commerce Department released data on Friday, showing that a closely watched inflation gauge had cooled beyond what economists were expecting and that prices fell monthly for the first time since April 2020.
According to The New York Times, the inflation gauge, called the personal consumption expenditures (PCE) price index, showed a notable cooling in November.
The PCE inflation measure reportedly jumped 2.6% in the year through November, down from 2.9% in October, and was less than what financial experts had predicted.
This development is good news for Joe Biden and his team, including the Federal Reserve, which cited the PCE inflation measure when it said it aims for 2% inflation on average over time.
Overall, prices experienced a slight decline compared with October, marking the first time it fell in years. That decrease, a 0.1% drop and the first negative reading since April 2020, was attributed to a reduction in gas prices.
When volatile factors like food and fuel prices were excluded to provide a clearer view of underlying price pressures, inflation showed a modest climb every month and a 3.2% increase over the year. Although still above the Fed's target, the report indicates a swift deceleration in price increases toward the central bank's goal.
The report also aligns with the notion that the economy might be approaching a soft landing, in which inflation moderates back to normal without triggering a recession.
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