WASHINGTON (NewsNation) — In May, a key inflation index fell to its lowest level in two years, bringing the Federal Reserve closer to hitting its goal of reaching 2% inflation.
But while price pressures are easing and it may look good on paper, it might not provide significant enough relief for American families.
President Joe Biden boasted in a statement on Tuesday that inflation is at its lowest level in two years, falling for 11 months straight. After peaking at 9% a year ago, the key inflation index is now down to 4%.
Even persistently high food prices have started to slide. Milk, used cars, appliances, TVs, airline tickets and even health insurance all cost less, according to the U.S. Bureau of Labor Statistics consumer price index.
The White House called it “breathing room for middle-class families.”
“Gas prices are down $1.40 and grocery prices are trending down with egg prices, in particular, nearly 30% [down] since January,” White House press secretary Karine Jean-Pierre said at a press briefing Tuesday.
But Americans still rank inflation as the top issue facing the U.S. today, according to a NewsNation/Decision Desk HQ poll released last week.
The poll revealed that 90% of respondents said they remain concerned about inflation, with Democrats slightly more likely than Republicans to say it is the biggest issue.
Republicans cited inflation as a top reason voters should vote Biden out in 2024.
“The inflation crisis the president helped create is costing American families $880 this month,” Sen. John Thune (R-S.D.) said on the Senate floor Tuesday.
But does that argument hold if inflation, overall, is trending down?
Part of the reason middle-class families might still be feeling the pinch in their pocketbooks is that food prices, on the whole, are still up about 6%.
Car repairs and car insurance, as well as rent, are also still up.
Republicans pointed out that higher take-home pay can’t keep up with those heightened prices.
And what are the GOP economic proposals?
They’re focused mostly on popular, but expensive, Social Security and balancing the federal budget.
Former President Donald Trump said he won’t cut a penny from Social Security and Medicare, and former Vice President Mike Pence said he wants “common sense” cuts. Presidential hopeful Nikki Haley said she wants to cut welfare while Asa Hutchinson said he wants to create an independent commission to study the future of Social Security and Medicare.
Florida Gov. Ron DeSantis said he won’t mess with Social Security if elected president.
Biden published an op-ed last week, touting his record on the economy and trying to work on the messaging around jobs and inflation.
The president wrote, “Our economic recovery has been the strongest of any major economy. My goal now is to protect and build on this progress.”
Now, the Federal Reserve is expected to make another decision on interest rates at a meeting this week.