Biden Says Economy Had ‘Zero Percent Inflation’ Despite Remaining Near Record Highs in July

President Joe Biden and other White House officials on Wednesday said a recent report shows the economy had “zero percent” inflation in July although the Consumer Price Index showed it remained near historic highs of 8.5 percent year-over-year.

“Before I begin today, I want to say a word about the news that came out today relative to the economy. Actually, I just want to say a number: zero,” Biden said, adding, “Today, we received news that our economy had zero percent inflation in the month of July.”

It’s not clear if Biden meant a “zero percent increase,” as the Consumer Price Index dropped from June to July. The Consumer Price Index showed that inflation remained at 8.5 percent in July 2022, dropping from 9.1 percent in June and dropping 0.2 percentage points from May 2022.

Echoing Biden’s comment, White House press secretary Karine Jean-Pierre wrote on Twitter: “We just received news that our economy had 0 percent  inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped.”

U.S. consumer prices have been surging due to a number of factors, including snarled global supply chains, massive government stimulus early in the COVID-19 pandemic, COVID-19 lockdowns and rules, and the Russia–Ukraine war.

The price of gasoline has also contributed to the price pressures. After rising to over $5 per gallon in June, the price has dropped about $1 to $4.01 per gallon as of Wednesday, according to AAA data. The $4-per-gallon gas price is still far higher than before Biden took office in January 2021 when it hovered around $2.30 per gallon, data from the Energy Information Administration show.

“The all items less food and energy index rose 5.9 percent over the last 12 months,” said the official report from the Bureau of Labor

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