U.S. retail sales beat expectations in October By Reuters

Biden says inflation data due Friday will not reflect recent drop in some prices By Reuters

© Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks on infrastructure at the Kansas City Area Transportation Authority in Kansas City, Missouri, U.S., December 8, 2021. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) -President Joe Biden sought to reassure Americans on Thursday that rises in consumer prices were easing somewhat, saying that inflation data for November due out on Friday would not reflect a recent drop in some prices including energy costs.

The Biden administration has been under pressure after data last month showed a key gauge of inflation running at a three-decade high, driven by surges in the cost of gasoline and other goods.

The White House has said inflation is a global issue related to the COVID-19 pandemic, while Republicans have blamed it on the president’s sweeping spending agenda.

The consumer price index (CPI) for November is expected to have risen 6.8% compared with the same month last year, a Reuters poll of economists showed, accelerating from a 6.2% increase in October which was the fastest gain since November 1990.

“Fortunately, in the weeks since the data for tomorrow’s inflation report was collected, energy prices have dropped,” Biden said in a statement, noting a recent fall in retail gasoline prices in some states.

“The information being released tomorrow on energy in November does not reflect today’s reality, and it does not reflect the expected price decreases in the weeks and months ahead, such as in the auto market,” he said.

Biden repeated that passing his “Build Back Better” social spending plan would help lower costs.

The November core CPI, which excludes volatile food and energy components, is expected to have accelerated to a 4.9% annual increase from the prior month’s 4.6% gain, the Reuters poll showed.

Federal Reserve Chair Jerome Powell said last week the U.S. central bank needed to be ready to respond to the possibility that inflation may not recede in the second half of next year as most forecasters currently expect.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link