The rise in prices slowed down in July, even if it remains high.
With our correspondent in Washington, Guillaume Naudin
8.5% over one year in July. This is less than the 9.1% peak seen in June. And it is also less than what was expected on average by specialized observers. It is therefore an encouraging sign, even if it remains high, and above all it requires confirmation in the months to come.
There are disparities in price dynamics. The increase is still driven by food and housing costs. On the other hand, plane tickets and energy are down. Above all, the most scrutinized price in the United States, that of gasoline at the pump, is falling. It has even been in continuous decline for 57 days, as the White House likes to remind almost daily.
But there is a figure that Joe Biden remembers when commenting on this information: zero, 0% inflation on average over a month between June and July. It’s the first time since the spring of 2020 and politically, it’s very good news for him three months before the mid-term elections. If the trend continues, his Republican adversaries will find it more difficult to campaign on the angle of attack they have chosen: his economic policy. On the contrary, a week after very good job creation figures, the president claims the results as soon as he has the opportunity.