Headline Inflation Ticks Downward As Some Product Categories Continue To Surge

The Consumer Price Index rose 4.9% between April 2022 and April 2023, marking a continued decline from elevated inflation even as higher price levels continue to constrain household budgets.

The month-to-month increase of 0.4% was in line with analyst expectations, while core inflation, which factors out the more volatile food and energy categories, also rose 0.4% and in line with expectations. Food prices were flat and energy prices rose 0.6% while shelter prices, one of the largest contributors to the overall month-to-month increase, rose 0.4%, according to a report from the Bureau of Labor Statistics.

Despite the slight decrease from the 5.0% headline inflation recorded in March 2023, food and electricity prices have increased 7.7% and 8.4%, respectively, between April 2022 and April 2023. Real wages, which consider the effect of inflation on pay increases, fell 0.7% between March 2022 and March 2023, according to more data from the Bureau of Labor Statistics.

The latest inflation data comes as officials at the Federal Reserve increased the target federal funds rate in an effort to slow price level increases, a policy regime which raises the cost of borrowing funds for consumers and businesses, thereby lowering inflation, but dampening overall economic activity. Federal Reserve policymakers introduced a quarter-point rate hike last week, marking a continued slowdown from previous rate hikes and reflecting caution as the financial sector reels from the collapse of three medium-sized banks.

Officials at the Federal Reserve have broadly targeted a 2.0% inflation rate and maximum employment over the past four decades. Even amid the elevated price level environment and macroeconomic constraints such as a bottlenecked supply chain, the labor market has been a relative bright spot in the economy: unemployment was charted at 3.4% last month, according to data from the Bureau of Labor Statistics released on Friday. Low labor force participation, on the other hand, has worsened inflationary pressures and supply chain constraints as businesses increase wages to fill their payrolls and seek to retain more workers.

Economic growth in the United States slowed to a 1.1% annualized rate in the first quarter, marking a significant decline from previous quarters, according to an advance estimate released last week by the Bureau of Economic Analysis. Federal Reserve officials have also concluded that the present instability in the financial system warrants a recession forecast for the latter portion of the year, followed by a predicted recovery over the subsequent two years.

President Joe Biden has repeatedly asserted that his policies are responsible for easing price levels in some product categories, even as inflation remains between three times and four times higher than levels seen at the start of his administration. “We are making progress in the fight against inflation,” he commented in one statement released in April. “The fight against inflation isn’t over, and every day my administration is working to give families more breathing room.”

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Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen each previously asserted that rising price levels were a temporary result of the demand increases that followed worldwide government lockdowns. Yellen admitted last year that she was incorrect due to “unanticipated and large shocks to the economy that have boosted energy and food prices.”

Georgia’s National Championship Football Team Rejects Biden Invite To White House Celebration

The University of Georgia’s football team has rejected an invitation from President Joe Biden to celebrate their blowout victory in the national championship game against Texas Christian University.

The team was invited to visit with first lady Jill Biden on June 12 for “College Athlete Day,” according to a report from the Atlanta Journal-Constitution. However, the team said in a statement that their calendar is already full.

“The University of Georgia first received on May 3 an invitation for the Bulldog football team to visit the White House on June 12,” the statement said. “Unfortunately, the date suggested is not feasible given the student-athlete calendar and time of year.”

The report noted that the team’s decision not to go came after months of criticism of the White House from fans of the team and Republicans for failing to invite the team sooner.

The entire Georgia congressional delegation sent a letter to the White House back in January urging White House officials to recognize the team at their “earliest convenience.” The group noted that the Georgia’s 2021 national championship team did not get to visit the White House due to COVID restrictions.

The letter from Rep. Earl “Buddy” Carter (R-GA) was signed by Sen. Raphael Warnock (D-GA), Sen. Jon Ossoff (D-GA), and Reps. Barry Loudermilk (R-GA), Henry C. “Hank” Johnson (D-GA), Austin Scott (R-GA), Sanford Bishop (D-GA), Rick Allen (R-GA), Nikema Williams (D-GA), Marjorie Taylor Greene (R-GA), David Scott (D-GA), Drew Ferguson (R-GA), Lucy McBath (D-GA), Andrew Clyde (R-GA), Mike Collins (R-GA) and Rich McCormick, M.D. (R-GA).

“We write to request you host the 2023 National Collegiate Athletic Association (NCAA) College Football Playoff National Champions, the University of Georgia Bulldogs, for a White House ceremony at your earliest convenience,” the letter said. “The Georgia Bulldogs, led by head coach Kirby Smart, completed a historic season in which they accomplished a 15-0 record and won their second national championship in the same number of years.”

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“For years, the college football national champion has had the high honor of being hosted, by the President, at the White House,” the letter later added. “Due to COVID-19 constraints, the 2021-22 University of Georgia national championship team was unable to come to D.C. It is our hope that this repeat championship team can join the many teams prior that have been honored by the President.”

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