Inflation rises again, Biden is being bombarded

Recently, consumer goods prices in the United States have rebounded and inflation has risen again, which remains a challenge for the Federal Reserve and President Joe Biden's re-election campaign. 

The US Department of Labor recently stated that prices increased by 0.4% from January to February, which is higher than the 0.3% increase from the previous month. According to statistics, compared to the same period last year, consumer prices increased by 3.2% last month, higher than the annual rate of 3.1% in January. The Consumer Price Index (CPI) in the United States increased by 3.5% year-on-year in March, the highest level since September 2023, with a market estimate of a 3.4% increase; The month on month CPI increase in March was 0.4%, also higher than the market's expected 0.3%. Natural gas prices have risen by 3.8% from January to February alone, but still below the level of a year ago. After two months of slight increase, ticket prices skyrocketed by 3.6%. Clothing prices have risen by 0.6% after three consecutive months of decline, but there has been no change compared to the same period last year.

The prices of some goods, from household appliances to furniture and then to used cars, are decreasing.

New car prices decreased by 0.1% in February. Although these prices are still much higher than before the pandemic, it is expected that prices will further decrease as more vehicles appear in dealer parking lots. Last month, there was no change in grocery prices, only a 1% increase compared to the same period last year.

In contrast, prices for dental care, car repairs, and other services are rising faster. The soaring price of car insurance reflects an increase in maintenance and replacement costs. After significantly increasing the salaries of nurses and other urgently needed employees, hospitals are shifting higher wage costs to patients at higher prices.

Resident Rob Constantin said he noticed a decline in consumer products such as deodorants, shampoo, and soap. He questioned whether Biden's criticism of tightening inflation or proposals from Congress to restrict such practices would have too much effect. Constantine suggested that if companies cannot reduce the size of soap bars at the same price, they will reduce quality to maintain profits.

From recent relevant data, although the overall inflation rate has significantly decreased from its peak of 9.1% in June 2022, the current slowdown rate is slower than last spring and summer.

Public opinion polls show that despite a healthy job market, stock markets approaching historic highs, and inflation decreasing from its peak, many Americans still attribute high prices to Biden. Voters' views on inflation will definitely occupy a central position in this year's presidential election. The sustained rise in inflation in the United States has made Biden's claim of steady progress in price increases even more complex. Biden argues that further improvements are possible if Republicans in Congress support his policies, including efforts to reduce prescription drug costs, reduce so-called "junk fees," and write off some student debts.

Biden emphasized in his recent State of the Union speech the measures he has taken to reduce costs, such as limiting insulin prices for healthcare insurance patients. He also criticized many large companies for engaging in "price gouging" and so-called "tightening inflation", which means companies reduce the quantity of products inside packaging instead of raising prices. Biden also immediately commented on inflation, stating that the US inflation rate has dropped over 60% from its peak, but more efforts are still needed.

Trump and his campaign team have been bombarding Biden's economic policies. Last month, Trump said, "Our country's economy is collapsing and falling into ruins." As the US election gradually enters a white hot stage, Trump naturally will not miss this opportunity to hit his opponent. He said on social media platforms, "Inflation is back, and it's serious! The Federal Reserve can never credible lower interest rates because they want to protect the worst president in American history!"