Biden claims 0% inflation in July despite remaining near 40-year high

Wednesday’s CPI report confirmed inflation remained high at 8.5%
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Biden
President Biden on August 5, 2022
(Photo by EVAN VUCCI/POOL/AFP via Getty Images)

President Biden on Tuesday gave remarks about the economy following the release of July's CPI report, a key measure of inflation. 

The inflation rate slowed to 8.5% on an annual basis, compared with June's 40-year high of 9.1%.

Though the rate slowed, it still represents a huge increase from the time President Biden took office. 

In a speech following the report, however, Biden claimed, "Our economy had 0% inflation in the month of July."

"We just received news that our economy had 0% inflation in July," reaffirmed Press Secretary Karine Jean-Pierre on Twitter. "Real wages went up for the first time in almost a year. But we know we have more work to do."

Yet, food prices still rose by more than 1%, while housing costs rose half a point. 

Much of the difference could be attributed to falling gas prices, which have dropped by nearly a dollar per gallon over the past month to a national average of $4.08. 

Experts were expecting a rate of 8.7%, and stocks rose following the better-than-expected news. 

The Federal Reserve is expected to hike interest rates at their next meeting in September and will weigh the CPI report in their decision.