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Biden Hails Latest Inflation Data as Powell Warns of ‘Some Pain’

  • Fed’s preferred price index fell in July from prior month
  • Inflation is political challenge for Biden ahead of midterms
Joe Biden

Joe Biden

Photographer: Daniel Lozada/Bloomberg

President Joe Biden celebrated a monthly drop in consumer prices, a potential political tailwind for him, even as Federal Reserve Chair Jerome Powell warned against putting too much confidence in a single month’s data.

The US personal consumption expenditures price index, which the central bank uses for its inflation target, fell 0.1% in July from a month earlier, the first negative reading since the start of the pandemic, Commerce Department data showed Friday. The same report also showed personal income rising, though consumer spending was slower than economists expected.