Inflation showed a modest slowdown in April, but the continued price increases remain a significant challenge for President Biden’s 2024 campaign. The Consumer Price Index (CPI) has risen 19.4% since Biden took office, according to the latest data. This cumulative price hike has been a focal point for GOP criticism, with new data on Wednesday indicating that inflation is nearing a critical 20% threshold.
President Biden addressed the latest inflation report by emphasizing that managing costs remains his top economic priority. He acknowledged the progress made but admitted, “we have a lot more to do.” For context, during Trump’s four-year presidency, prices rose by just under 7.8%.
Economists note that the differing inflation rates during the two administrations are influenced by various factors beyond presidential control. For instance, the COVID-19 pandemic led to lower gas prices at the end of Trump’s term, whereas under Biden, supply chain disruptions drove prices up in many areas.
Despite these nuances, republicans are expected to heavily focus on the cumulative inflation figures in the coming months. Terry Haines, founder of Pangaea Policy, told Yahoo Finance that the high prices create a challenging narrative for Biden, particularly in key states he needs to win. Haines added, “That hurts the president a lot in a lot of states that he needs to carry, and it is a dynamic that shadows his campaign.”
Some of Trump’s supporters claim the price increase during Biden’s tenure is even higher. The Make America Great Again Inc. super PAC stated that prices have risen 19.9% since Biden took office. This slight discrepancy from the official 19.4% figure is due to the group’s use of non-seasonally adjusted data, which shows a marginally higher increase. The PAC also highlighted significant price hikes in specific goods like gasoline, eggs, and airline tickets.
The issue of inflation has been a persistent challenge for Biden, with the president and his team often struggling to present a cohesive message. In a recent interview with Yahoo Finance, Biden incorrectly claimed that inflation was at 9% when he took office and is now down to around 3%. The actual year-over-year inflation rate when he took office was 1.4%, which then climbed to a peak of 9.1% in June 2022 before declining to the current 3.4%.
During the interview, Biden also emphasized job creation as a key accomplishment of his administration, even though polls consistently show that inflation is the top economic concern for voters. This trend was evident in a survey conducted by Blueprint 2024, a Democratic-aligned group, which found that 91% of respondents viewed inflation as a “serious problem.” Among these, 37% identified it as one of the “most important issues,” compared to only 25% who prioritized jobs and the economy.
Biden’s assertion that his administration needs more time to address these issues reflects his broader strategy of focusing on economic stability and job growth. However, whether voters will be willing to give him that time remains uncertain as inflation continues to be a dominant concern heading into the 2024 election season.
