US President Joe Biden considered this Monday that the price increases in the United States are “predictable” and “temporary”, in response to fears of an inflationary push in the country.
“Most of the price increases we see are predictable and temporary,” he said in a speech at the White House, in which he attributed the situation to the reopening of the economy after the pandemic, which causes “challenges” in the supply of materials. and goods.
“No serious economist” is suggesting runaway inflation will occur, he said.
“You cannot relaunch the world economy and hope that something like this (ndlr: a price increase) does not happen,” he added, citing as an example the global shortage of microchips that slowed “the production of cars and temporarily raised the price of cars. cars ”.
Biden gave another example: that of the wood used to build houses in the United States, whose prices “rose at the beginning of the reactivation but, in the last weeks, they fell more than 50%”.
Biden’s statements support those of the Secretary of the Treasury, Janet Yellen, and also those of the president of the Federal Reserve, Jerome Powell, who acknowledged that the magnitude of the price hike surprised him but maintains that it will begin to subside in a few months. .
Powell acknowledged last week that inflation will remain “high” in the coming months, but said it will decline once material supply “bottlenecks” and other temporary problems are resolved.
Inflation in the United States has skyrocketed in recent months, and the consumer price index (CPI) has risen 5.4% since June 2020, the highest level in 12 months since August 2008.
Wholesale prices have also increased, with the producer price index at 7.3% in the 12 months ended June, the highest since the Labor Department began measuring it in November 2010, according to published data. In the past week.
Biden again defended his gigantic social spending and infrastructure plan, which will be put to a first vote in the Senate on Wednesday.