(Bloomberg) -- President Joe Biden said American families would see the impact of easing inflation during the holidays after a key gauge of US consumer prices posted the smallest monthly advance in more than a year.
“This is welcome news for families across the country, as they get ready for holiday celebrations and for family dinners,” Biden said after the data was released Tuesday.
Asked when he thought price growth would be back to normal, Biden said: “I hope by the end of next year.”
“We’re much closer. But I can’t make that prediction,” he said. “I’m convinced they’re going to continue to go down.”
US stock futures soared on the news, and yields on Treasuries tumbled across the curve. S&P 500 contracts jumped and Nasdaq 100 futures added more than 4% before slightly paring gains.
Core inflation, which strips out food and energy, rose 0.2% from the previous month, compared to an estimate of 0.3%; it rose 6% from a year earlier, compared to an estimate of 6.1%. Economists see the gauge as a better indicator of underlying inflation than the headline measure, and the latest data could indicate the worst of inflation has passed.
The levels remain well above the Federal Reserve’s target, but signal a material decline in price growth heading into next year and open up room for the Fed to ease its pace of hikes.
Read more: Fed Doves’ Case for Rate Pause Bolstered by Inflation Slowdown
“For a lot of folks things are still pretty rough. But there are bright spots all across America — we’re beginning to see the impact of our economic strategy,” Biden said. “My goal is simple: get price increases under control without choking off economic growth.”
Read more: US Inflation Will Be Much Lower by End of 2023, Yellen Says
Republican National Committee Chairwoman Ronna McDaniel, though, said prices are still too high for American consumers.
“As a result of Democrats’ reckless spending, Americans will pay more this year to put gifts under the tree, heat their homes, and feed their families. Democrats don’t care about the burden their agenda has placed on families,” McDaniel said in a statement.
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