Data released Tuesday defied predictions that inflation might take a tumble in August.
Instead, the consumer price index saw an increase of 8.3 percent, down slightly from an 8.5 percent increase in July. Prices rose when experts had been expecting a decline, according to the Washington Examiner.
“Inflation momentum accelerated in all the wrong places,” said Blerina Uruci, an economist at T. Rowe Price, according to The New York Times.
The stock market is presently down a thousand points after inflation hit 8.3%, much worse than expected. And Joe Biden is having a celebration at the White House to praise his administration’s response to inflation. You can’t even make this up. It’s tone deaf insanity.
— Clay Travis (@ClayTravis) September 13, 2022
The Times noted that although gasoline and used car prices are falling, other sectors, such as new cars, dental care and vehicle repair, more than made up for those declines.
The bad news provoked a severe Wall Street reaction. The Dow Jones average dropped 1,276.37 points, according to CNBC, with some experts saying a severe recession might be ahead.
Any such pessimism was not felt at the White House.
President Joe Biden said in a statement that the report shows “more progress in bringing global inflation down in the US economy.”
On Tuesday, Biden also held a celebration of the so-called Inflation Reduction Act rammed through Congress by Democrats.
Biden used the event as a chance to attack Republicans, according to The Washington Post.
“Republicans choose not to join us,” Biden said. “In the end, every single Republican voted against this historic law. So it fell to the Democrats to meet this moment and deliver for the American people. And that’s exactly what we did.”
Republicans argued on Twitter that Biden has failed in the battle against inflation.
NEVER FORGET: The Biden administration spent more than a year LYING about inflation. pic.twitter.com/xd8uDqv5yK
— RNC Research (@RNCResearch) September 13, 2022
On this day, September 13th, 2022:
📉The Dow dropped 1200 points
💰Inflation was announced at 8.3%
And Joe Biden LITERALLY held a celebration at the White House for his spending bill that will do NOTHING to help curve rising prices
You can’t make up how out of touch they are!
— Doug Collins (@RepDougCollins) September 13, 2022
Experts said the Federal Reserve is likely to raise interest rates again.
“It’s becoming more apparent to market participants that the amount of tightening from the Fed thus far has not been enough to cool the economy and bring down inflation,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.
“As a result, the Fed is likely going to need to bring the policy rate well above 4% to achieve their mandate of stable prices.”
This article appeared originally on The Western Journal.