The Federal Reserve eyes the Core Personal Consumption Expenditure (PCE) Deflator as an inflation signal. The latest figures show the barometer came in at 4.6% year-over-year, slightly better than the expected 4.7% rate.
This marked the lowest level for the benchmark since Oct. 2021.
Reports show non-durable goods led the downward trend, but service costs continue to rise. Add to that the Cyclical core PCE inflation, which measures inflationary pressures tied to the present economic cycle. This, unfortunately, is higher than it’s been since 1985.
More alarmingly, private wages surged from 6.7% year-over-year to 7.7%. This, of course, could add fuel to the inflationary fires.
All of these figures are reflective of the mixed bag that is the current inflation level in the U.S. While a few sectors are trending modestly downward, it is notable that the overall momentum for the last two-plus years under President Joe Biden is an economic catastrophe.
And while inflation is technically lower than its 40-year high reached earlier in his presidency, Biden refuses to accept what transpired under his watch.
President Biden has already caused record inflation. Now, his reckless refusal to negotiate could lead to a first-ever default.
I am prepared to clear my calendar. Mr. President, what are you afraid of?
— Kevin McCarthy (@SpeakerMcCarthy) March 29, 2023
For example, the president and his administration prefer to quote percentages of percentages to trumpet victory over soaring prices. But a closer look at the Consumer Price Index (CPI) paints a starkly different scenario.
The CPI is noteworthy for collected prices of roughly 94,000 goods every month to produce a gauge of U.S. inflation. The Winston Group took that indicator and devised the “Presidential Inflation Rate.”
This figure tracks how the president has handled the economy from inauguration day through the present day. It is a clear indicator of success — or failure — over the entire length of time served in the White House. It avoids cherry-picking dates to enhance the record.
Twenty-six months into his term, Biden has little to show for his efforts and much to explain. The overall inflation rate for his tenure is 15%, far beyond any president’s figure since another failed Democrat, Jimmy Carter, posted an 18.1% inflation total during his presidency.
The 15% disaster contrasts nicely with former President Donald Trump’s 4.1%, which was the lowest number dating back to at least the mid-1970s.
Prices skyrocketed across the board under Biden, but the main culprit was energy with its shocking 37.2% jump.
While economic indicators send notoriously mixed signals, the clearest indication of the financial health of Americans is found in inflation and wages. And especially for price increases, this administration has been a miserable failure.