President Biden has yet to benefit from moderating inflation, and data due Thursday could complicate the White House's attempts to show progress in raising prices.
The Consumer Price Index is expected to show that headline inflation rose slightly faster in December than in November on an annualized basis.
However, “core” inflation – a key measure that excludes volatile food and energy prices – is expected to have risen 3.8 percent over the year to December, up from 4 percent in November. If that were to happen, it would be the first time the underlying index fell below 4 percent since May 2021.
But that moderation has not prevented Biden's rivals from using high prices as a cudgel to criticize his economic management.
This week, former President Donald J. Trump, the front-runner for the Republican presidential nomination, blamed Biden for rising prices while campaigning in Iowa ahead of Monday's caucuses.
“Our middle class is being crushed by Biden's crippling inflation,” Trump said on the Truth Social website.
Polls have shown that voters have a pessimistic view of Biden's economic record. Despite a strong labor market, higher costs and interest rates have made Americans feel poorer.
Inflation politics has also infiltrated the Republican primary race, with Trump's main rivals, Gov. Ron DeSantis of Florida and Nikki Haley, a former United Nations ambassador, suggesting that Trump's big spending policies when he was president They set the stage. for higher prices.
“When it comes to our economy and controlling inflation, the first thing we need to do is recover the more than 100 billion unspent Covid dollars that are still available,” Haley said during a town hall hosted by CNN this week.
At a Fox News town hall this week, DeSantis blamed lawmakers from both parties for borrowing too much money during the pandemic, but said rising incomes in his state were helping people cope with “inflation.” of Biden.”
Top Biden administration officials are hopeful that as inflation moderates, voters will feel better about the economy.
“The Biden administration is doing everything it can to reduce costs affecting Americans,” Treasury Secretary Janet L. Yellen told reporters at an event in Virginia on Monday. “I think the feeling will get better with time.”
