Inflation at 6.3% in August while Biden celebrates Inflation Reduction Act
Fox News White House correspondent Jacqui Heinrich reports from the North Lawn on the Biden administration's celebration Tuesday for their efforts to lower inflation despite numbers rising over the summer on 'Special Report.'
Politicians and conservatives criticized President Biden on Tuesday after he announced that he was "celebrating" the signing of the Inflation Reduction Act as August inflation remained uncomfortably high.
"Exactly four weeks ago, I signed the Inflation Reduction Act into law. So today, we're celebrating," Biden tweeted on Tuesday, announcing that he would be delivering remarks on the bill at 3PM on Tuesday.
Biden's tweet garnered a lot of response from politicians and conservatives wondering what he was celebrating. Inflation rose 8.3% in August from last year. While the price of gasoline has declined over the course of the summer, the price of groceries and rent remain very high. Prices increased 0.1% in the one-month period from July and food prices climbed 0.7%.
The price of groceries rose 13.5% in August from last year, which is the highest it's been since 1979.
U.S. President Joe Biden delivers remarks on what he calls the "continued battle for the Soul of the Nation" in front of Independence Hall at Independence National Historical Park, Philadelphia, U.S., September 1, 2022. (REUTERS/Jonathan Ernst TPX IMAGES OF THE DAY/File Photo)
ANALYSIS SUGGESTS INFLATION REDUCTION ACT WILL ONLY REDUCE INFLATION BY 0.1 PERCENTAGE POINTS
Rep. Virginia Foxx, R-N.C., responded to his tweet and said that "families that saw grocery prices skyrocket by 13.5% in August aren't celebrating."
"Celebrating what?" asked Rep. Bill Johnson, R-OH. "The fact that costs are still rising due to your administration and Democrats’ tax and spend extravaganza?"
A University of Pennsylvania Penn Wharton analysis found that the Inflation Reduction Act would only reduce annual inflation by 0.1 percentage points.
The small reduction would only happen "once major deficit-reducing provisions of the legislation are fully implemented."
"The Act would have no measurable impact on inflation after 2028. All these point estimates are not statistically different from zero, indicating a low level of confidence that the legislation would have a measurable impact on inflation," the analysis said.
Rep. Tom Emmer, R-MN., said Republicans were "ready and committed" to cut "wasteful spending."
Rep. Jody Hice, R-GA., said "Americans aren't taking the victory lap with you, Joe."
Steve Guest, Special Advisor for Communications for Sen. Ted Cruz, R-TX., said that Biden was "basically" saying "let them eat cake."
"America is in a recession and Joe Biden is celebrating. Talk about Democrats being out of touch," he added.
President Joe Biden speaks during a Fourth of July celebration for military families on the South Lawn of the White House, Monday, July 4, 2022, in Washington. (AP Photo/Evan Vucci)
"The Biden Administration's victory lap for the so-called Inflation Reduction Act—on the same day new data shows Democrat-induced inflation continues to surge—is a slap in the face to Americans being clobbered by higher prices," Rep. Patrick McHenry, R-N.C., said.
Rep. French Hill, R-AR., responded to Bidens tweet by asking "a celebration?"
"The American people can't afford a celebration over a bill that will do little to nothing to combat inflation."
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U.S. President Joe Biden speaks during a rally hosted by the Democratic National Committee (DNC) at Richard Montgomery High School on August 25, 2022 in Rockville, Maryland. (Drew Angerer/Getty Images)
Biden tweeted later on Tuesday that the August numbers showed "progress in fighting inflation."
"This month, prices overall were essentially flat, gas prices were down, and wages were up – that's good news for American families. My plan is showing we can lower costs, create jobs, and bring manufacturing back to America," he tweeted.
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