Biden calls latest inflation pain a ‘setback,’ says he is still optimistic about U.S. economy

President Biden acknowledged Friday that January’s price increases show soaring inflation hasn’t been tamed, but he said he’s still optimistic he can get control of rising prices.

The president’s remarks come just hours after the Federal Reserve’s preferred inflation measure showed prices rose 0.6% in January, according to data from the Bureau of Economic Analysis.

The personal consumption expenditures price index gained exceeded estimates of a 0.4% rise, the data showed. In addition, the annual level is now 5.4% compared to 5.3% in December, showing prices rose during the year.

Core personal expenditures, which omit volatile food and energy prices, rose 0.6% in January and 4.7% on an annual basis. Analysts had expected a yearly rate of 4.4%.

All of the levels are well above the Fed’s targets for inflation, which remains more than twice the Federal Reserve’s goal.
“As I’ve long said, there may be setbacks along the way but we face global economic challenges from a position of strength,” Mr. Biden said in a statement.

Mr. Biden went on to blame Russian President Vladimir Putin, whose invasion of Ukraine caused energy and grain prices to spike. The president said his administration worked to bring down gas prices by an average of $1.60 per gallon since Mr. Putin started the war a year ago.

Yet, gas prices remain roughly $1.00 more per gallon higher than when Mr. Biden took office. The average per gallon price of gas across the U.S. is $3.39 compared to $2.39 when Mr. Biden was inaugurated, according to data from AAA.

Despite the bad economic news Friday, Mr. Biden said he is optimistic he will get prices under control.

“When I travel the country, I see optimism for this year and the years ahead,” he said. “The optimism of families with just a little bit more breathing room thanks to our work to get workers back into jobs.”