In September, the U.S. faced some mixed economic news. The general price level went up a bit, and Vice President Kamala Harris might not have been too happy with the latest inflation report.
Alongside this, jobless claims reached their highest level in 14 months, but there was still good news in the job market. More new jobs were created than expected, which is a sign that the economy is still holding strong despite some challenges.
The Latest Inflation Numbers
The consumer price index (CPI), which measures how much things cost, rose by 0.2% in September. This brings the annual inflation rate to 2.4%. It was a little higher than expected because many experts predicted a 0.1% rise.
Additionally, core inflation, which excludes food and energy prices, went up by 0.3%, resulting in a 3.3% annual increase.
This is higher than experts had predicted. Core inflation includes essential things like rent, car insurance, healthcare, clothing, and travel costs, and it impacts how people manage their daily budgets.
Why Prices are Still High
Even though inflation has decreased significantly from its high of over 9% in 2022, prices are still higher than when President Joe Biden and Vice President Kamala Harris took office.
This has led to frustration for many people, as prices have remained elevated for a long period. In fact, recent surveys show that the economy is a major concern for voters, especially with the upcoming election.
Public Concern Over the Economy
A Gallup poll conducted in September revealed that the economy is the main issue for voters, with 52% saying candidates’ views on the economy will be “extremely important” when deciding who to vote for.
This is the largest percentage since the 2008 economic crisis.
The poll also showed that many people believe former President Donald Trump has better economic handling skills than Vice President Harris, with 54% favoring Trump over Harris’s 45%.
This suggests that voters are still concerned about high daily costs, even though there has been some progress with inflation.
Trump’s Criticism of Biden and Harris’s Economic Policies
During a recent speech in Detroit, former President Trump criticized the Biden-Harris administration’s handling of inflation and the economy.
Trump argued that there was little inflation during his presidency and claimed that the economy has worsened under Biden and Harris due to rising prices.
He also mentioned that his better polling numbers are connected to the recent rise in the stock market, citing praise from financial expert Scott Bessent.
The Impact of the American Rescue Plan
One key factor in the rise of inflation was the $1.9 trillion American Rescue Plan passed by Democrats in March 2021, which many experts warned could lead to higher prices.
Vice President Harris played a crucial role in getting this bill passed, as she cast the deciding vote in the Senate, even though Republicans did not support it.
The September inflation report and job market data tell a mixed story about the U.S. economy. While inflation has decreased from its peak, prices are still high, and people are feeling the impact.
Job growth continues to be strong, but concerns about the economy remain a major issue for voters, especially as the election approaches.
The debate over how best to handle inflation and economic recovery will likely continue to play a large role in the political discussions leading up to the election.
What is the current inflation rate in the U.S.?
The current inflation rate in the U.S. is 2.4%, based on the consumer price index (CPI) for September.
Why is inflation still a concern?
Although inflation has dropped from its highest point in 2022, prices are still higher than when President Biden and Vice President Harris took office, causing concerns for everyday costs.
How does core inflation differ from regular inflation?
Core inflation excludes food and energy prices and focuses on basic costs like rent, healthcare, and clothing, which affect daily budgets
Why are jobless claims important?
Jobless claims show how many people are filing for unemployment benefits. A rise in claims can signal economic challenges, but high job creation, like the 254,000 new jobs last month, is a positive sign.
How does inflation affect voters?
Many voters are concerned about the economy, with a Gallup poll showing that the economy is the most important issue for voters heading into the election. Many also believe former President Trump handled the economy better than Vice President Harris.
