Big Picture: Experts Project Inflation Will Ease in 2022; Best Way to Continue Lowering Cost of Living Is to Pass Build Back Better Act
FOR IMMEDIATE RELEASE: December 10, 2021
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BIG PICTURE: EXPERTS PROJECT INFLATION WILL EASE IN 2022; BEST WAY TO CONTINUE LOWERING COST OF LIVING IS TO PASS BUILD BACK BETTER ACT
WASHINGTON, D.C. – In contrast to today’s CPI report, which is based on backwards-looking data that does not reflect current reality, experts project that inflation is set to come down heading into 2022. In fact, the most recent data indicates that the “prices of everything from oil to natural gas to wheat and corn have already started falling.”
“President Biden knows that even a small increase in prices can be difficult, and make a difference for families’ budgets, which is why he’s taken aggressive action to bring down prices for Americans, including addressing supply chain challenges, ordering the largest ever release from the U.S. Strategic Petroleum Reserve, combating anti-competitive price gouging, and more, while Republicans have treated inflation as a political football and opposed measures to bring down the cost of living for families in the Build Back Better Act,” said Building Back Together Executive Director Danielle Melfi. “Congress must act swiftly to pass the Build Back Better Act and build on the progress made by President Biden in order to deliver much-needed investments in lowering the cost of health care, child care, elder care, prescription drugs, utility bills, and more.”
Today’s CPI report is driven in part by energy prices that have since begun to fall as the President has taken strong steps to bring down prices at the pump:
- Citigroup: “Energy boom fueling inflation is over”
- The U.S. Energy Information Administration projected this week that gasoline prices will fall to an average of $2.88 per gallon next year.
- CNN: “Finally some relief: Gasoline and natural gas prices are falling”
- Politico: “Oil prices have likely peaked, barring unforeseen shocks, said Al Salazar, vice president of intelligence at energy analytics firm Enverus.”
Now, experts are predicting that inflationary pressures will ease heading into 2022:
- J.P. Morgan Outlook 2022: “We expect goods price inflation to prove transitory.”
- CNN: “Cooling energy prices, if they last, could take significant inflationary pressure off the U.S. economy and inspire confidence among bummed out consumers.”
- Business Insider: “Key indicators hint the supply-chain crisis is over and inflation will cool off soon”
- Politico: “Prices of everything from oil and natural gas to wheat and corn have already started falling from their peaks earlier this year. That trend is likely to continue in 2022, lowering gas prices and stabilizing food costs for consumers, a potential boon for President Joe Biden’s party as it seeks to maintain control of Congress.”
Passing the Build Back Better Act is the key to continuing to lower the cost of living for American families.
- Since the President took office, American families on average have $100 more in their pockets each month, after accounting for inflation, thanks to the President’s laser focus on tackling the pandemic and kickstarting our economic recovery.
- According to analysis by the non-partisan think tank Third Way: Just four key provisions of the bill — expanding the Child Tax Credit, capping the cost of child care, expanding the Affordable Care Act, and closing the Medicaid coverage gap — will save the average family of four up to $7,400 a year in tax cuts and lower costs.
But Republicans in Congress insist on treating inflation like a political football and on opposing the President’s plans to lower costs for working families:
- Congressional Republicans are playing politics with higher prices — with a leading GOP Senator even calling inflation a “gold mine” for their party.
- They are in lockstep opposition to the Build Back Better Act and its provisions to bring down the biggest costs facing families like healthcare, child care, prescription drugs, and housing.
- Every Republican in Congress is opposing the President’s plan to let Medicare negotiate with drug companies to lower the price of prescription drugs.
- And they even want to roll back COVID safety measures and vaccine requirements that have helped tackle the pandemic and allow our economy to begin returning to normal.