Biden Tells Americans To Have ‘Peace Of Mind’ About Inflation Crisis

Joe Biden gave a speech last week discussing his administration’s efforts to bring down the cost of prescription drugs. During the speech, Biden told Americans to have “peace of mind” about the record-breaking inflation crisis that began shortly after he took office.

“The consumer price index for all items rose 0.6% in January, driving up annual inflation by 7.5%,” CNBC reported. “That marked the biggest gain since February 1982 and was even higher than the Wall Street estimate.”

“Look again, slight digression, inflation is up. It’s up,” Biden said. “And, coming from a family when the price of gas went up you felt it in the household, you knew what it was like, it matters.”

“But the fact, is that — if we are able to do the things that I am talking about here, it will bring down the cost for average families. It will bring down the cost for average families, I don’t know why they keep moving and all that, but the fact is they keep down the cost for average families,” Biden said.

Biden continued, “The fact is we’re in a situation now where you should have peace of mind. I know food prices are up, and we’re working to bring them down. As I said, I grew up in a family where the price at the pump went up, you felt it. I understand. But these things are necessities.”

Biden went on to claim that prescription drug prices are partially the reason for the inflation crisis.

“Everyone has less money in their pockets today because … of health insurance—it’s more expensive for everyone. Prescription drugs are a big chunk of that,” he said.

However, prescription drug prices have risen more slowly than the rate of inflation. According to a recent Stat report, prescription drug prices rose just under 5% in 2021 – far below the 7.5% rise in inflation over the last year. As reported by KHN, “As 2022 gets underway, pharmaceutical companies have so far raised wholesale prices by a median of 4.9% on more than 450 prescription medicines, an overall annual increase that is comparable to the price hikes seen over the past three years.”

According to CNBC, experts expect the inflation crisis to continue for the foreseeable future. CNBC cited Andrew Hunter, senior U.S. economist at Capital Economics, who wrote that the combination of higher food and housing prices “underlines our view that a rapid cyclical acceleration in inflation is underway and, with labor market conditions exceptionally tight, it is unlikely to abate any time soon.”

“While we still expect more favorable base effects and a partial easing of supply shortages to push core inflation lower this year, this suggests it will remain well above the Fed’s target for some time,” he added.