Staff Reports
In April, the rate of inflation stayed high, according to the Commerce Department. The department’s report showed that in April 2024, the prices were 2.7% higher than they were in April 2023. This means that the cost of goods and services didn’t change much from the previous month, though economists had predicted a similar level of inflation.
The report also revealed that on a month-to-month basis, prices went up by 0.3% in April compared to March, based on the PCE index. This means that prices are not going down as quickly as they need to in order to slow down inflation. The PCE index measures how much more money people spent in April 2024 compared to the same month in 2003, and it’s the tool that the Federal Reserve prefers to use to figure out if they should lower interest rates.
Inflation remained high in April, a worrying sign for Biden https://t.co/0Nic8ySgxR
— The Washington Times (@WashTimes) May 31, 2024
When you exclude the costs of food and energy, which can go up and down a lot, the core PCE inflation came in at 2.8% in April, the same as in March.
This report is not good news for President Biden, who wants inflation to come down as he tries to win reelection. Many people are upset by high prices, and a recent poll showed that 41% of Americans think that inflation or the high cost of living is their family’s most important financial problem. That’s up from 32% in 2022. Also, a different poll found that only 38% of Americans have confidence that Mr. Biden will make the right decisions for the economy.
In contrast, that poll showed that 46% of Americans have confidence that former President Donald Trump will make the right decisions for the economy.
