This morning’s inflation report came in hot with a 3% year over year Consumer Price Index. With this report being for the month of January, today’s result is the final score on inflation for the Biden presidency, putting the cumulative rate of inflation since the Biden inaugural month to the last month of his administration at 21.4%. This means prices increased more than 21% over the course of his term in office. On key household expenses, the cumulative inflation increases were even higher: food, 23.8%; gas, 32.8%, electricity, 31%.
Comparing Biden’s performance on inflation to his presidential predecessors, Biden was second to Jimmy Carter’s cumulative rate of an astronomical 48.7%. Carter’s predecessor Ronald Reagan had a cumulative rate of 21.3%, but most of that was due to the hangover effect of Carter’s high inflation rate in the first years of Reagan’s presidency.
The prolonged high level of inflation made this issue central to the 2024 presidential election. Despite the best efforts of the Biden White House, they failed to break through with voters on the idea that inflation was improving, which significantly hampered the Harris campaign. Exit polls showed that an overwhelming 75% of the electorate said inflation had posed some level of hardship for them and their families. 22% said inflation had been a severe hardship; 53% said a moderate hardship; while 24% said there had been no hardship.
This month’s report means the Biden inflation chapter is closing, and the Trump era begins. We’ll continue to track the Presidential Inflation Rate for President Trump throughout his presidency and make historical comparisons.
