The blistering pace of US inflation may have eased slightly in May, but prices have remained high to the detriment of Americans’ wallets, prompting President Joe Biden and the Federal Reserve to rush to help.

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Consumer prices in the world’s largest economy have climbed at the fastest pace in more than four decades, with gasoline prices at the pump hitting new daily highs amid the fallout from the Russian invasion of the Ukraine as well as ongoing supply chain challenges due to the Covid-19 pandemic.

Biden, whose popularity has taken a hit with soaring prices, has made tackling inflation his top national priority but finds he has few tools to directly influence prices.

“Inflation is the bane of our existence,” Biden acknowledged in an interview Wednesday with late-night TV host Jimmy Kimmel.

The Labor Department is expected to release May consumer price index (CPI) data on Friday, which analysts say will show a slightly larger monthly increase than the previous month, but could potentially see a slight slowdown. of the torrid annual rhythm.

Consumer prices in the United States jumped 8.3% in the 12 months to April, and although economists say the rate probably peaked in March at 8.5%, it should remain high for the coming months, which the White House has acknowledged.

“We estimate that the 12-month change in headline CPI only declined slightly” to 8.2%, said Rubeela Farooqi of High Frequency Economics.

CFRA’s Sam Stovall expects the rate to slow to 8.1%, but warned that further declines would likely be “glacial”.

However, a consensus forecast sees the rate holding steady at 8.3%, the pace seen in April.

Biden tried to drive home his optimistic message about economic progress in the wake of the pandemic, including rapid GDP growth and record job creation, while urging Congress to take action to cut product costs. specific and to go after companies such as shipping companies. who take advantage of limited competition to impose sharp price increases.

“We have the fastest growing economy in the world,” he said. “It’s allowed us to at least stay on top and a bit ahead of what’s happening in the world.”

– Inflation remains “high” –

The United States has come back strong from the economic damage inflicted by the Covid-19 pandemic, helped by favorable borrowing costs and massive government stimulus.

But with the pandemic still raging in other parts of the world, global supply chain grunts have meant that demand far exceeds resources. Meanwhile, the conflict in Ukraine has pushed global oil prices above $100 a barrel.

The Federal Reserve has started raising interest rates aggressively, with another sharp hike expected next week, as policymakers try to tackle inflationary pressures without triggering a recession.

The White House has acknowledged that inflation is expected to remain “elevated” in May, although press secretary Karine Jean-Pierre said Wednesday that the administration continues “to believe that the economy can move from a historic recovery … to stable and regular growth”.

In a video posted to Twitter on Thursday, Biden urged Congress to pass a bill to ease the cost of shipping containers to U.S. ports, which would lower prices.

The bill passed the Senate in March and the House of Representatives is expected to vote on the bill next week.

Another step Washington could take is to lift some of the punitive tariffs that Biden’s predecessor, Donald Trump, imposed on China, which supporters say would help ease price pressures by making imports cheaper. .

Treasury Secretary Janet Yellen told lawmakers on Wednesday that such a move was “under consideration” and that the administration would provide more information “in the coming weeks.”

at/hs