Why You Haven't Noticed Any Change Despite 'Core Inflation' Hitting a Two-Year Low

Job Market Shows Signs of Improvement, but Americans Still Struggle

According to the latest reports, the job market is showing signs of improvement and core inflation, which excludes food and energy prices, is at a two-year low. However, despite these positive indicators, Americans are not experiencing any significant relief. Annual inflation has decreased by about two-thirds since last summer, and inflation excluding food and energy is at its lowest level since September 2021, according to a statement from the White House.

Public Skepticism Towards "Bidenomics"

Despite President Joe Biden and his team promoting the success of their economic policies, known as "Bidenomics," polling data indicates that the American public remains skeptical about Biden's impact on the economy. According to a recent CNN poll, only 41% of Americans approve of President Biden's overall performance, and even fewer, 37%, approve of his handling of the economy specifically. This suggests that a significant portion of the population is dissatisfied with the president's performance in these areas.

Inflation and Rising Prices

According to a report by POLITICO, the difference between core inflation and overall inflation is the reason behind the increase in prices that Americans are paying for essential items such as food and energy. The overall inflation rate in July was 3.2%, indicating that despite President Biden's claims of a functioning economy, Americans are still facing higher costs for necessary purchases.

Higher Costs for Essential Items

According to the information provided, Americans are experiencing higher prices at grocery stores and restaurants, with an increase of approximately 17% since February 2020. Although gas prices have decreased from record highs, they are still higher compared to before President Biden's term began.

Consumer Goods Prices on the Rise

According to Omair Sharif of Inflation Insights, the prices of most consumer goods are increasing, which may explain why consumers are not as optimistic as economists about recent data showing a decrease in inflation.