Inflation “was at 9 percent when I came in and it’s now down around 3 percent.”
— President Biden, in an interview with Yahoo Finance, May 14
Inflation continues to be an albatross for President Biden as he seeks reelection. After decades of stable prices — inflation of about 2 percent a year — the sudden increase in Biden’s term was a shock, both for consumers and policymakers. Inflation, as measured by the year-over-year percentage change in the consumer price index, spiked to a 9 percent annual rate in June 2022. That was the highest level in 43 years. While it has come down to 3 percent, many experts had thought it would be lower by now. The Federal Reserve, which pushed interest rates sharply higher to cool the economy, has not lowered them in what was expected to be an election-year boost for the president.