Falling Gas Prices, Rapid Job Growth, and Historic, Cost-Cutting Legislation Thanks to President Biden

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Bloomberg: US Inflation Decelerates More Than Forecast on Gas Price Drop

Inflation Reduction Act will build on economic progress, lowering cost of health care, prescription drugs, and energy bills

WASHINGTON, D.C. — This month, families across the country are getting relief, with inflation easing as President Biden fights to lower costs. Our economy had zero percent inflation in July, with gas and rent prices continuing to drop across the country. And as President Biden delivers on his agenda to cut costs for working families, consumers across the country are increasingly confident that prices will continue to fall. This progress under President Biden is in addition to historic job growth and consistently low unemployment.

President Biden is determined to build on this progress through the Inflation Reduction Act, historic legislation to further lower the cost of essentials like health care, prescription drugs, and energy bills, which passed the Senate this week. Not only will this bill lower costs, but it is fully paid for by making big businesses pay their fair share and does not raise taxes on anyone making less than $400,000 a year.

“President Biden’s agenda puts the needs and priorities of working families front and center – and that’s clear as we’re seeing the impact of his fight to bring down costs,” said Building Back Together Executive Director Danielle Melfi. “Inflation is slowing, gas prices have now fallen for more than eight weeks, and historic legislation that will further lower costs is getting done under his watch. Now, the president is determined to see the Inflation Reduction Act across the finish line to bring down the cost of other essentials, saving families hundreds of dollars a year on health care, prescription drugs, and energy bills.”

This month, we’re seeing inflation easing as gas prices continue to fall across the country:

  • Across the country, families are seeing relief from higher prices as the cost of essentials like gas and rent are dropping. 
  • Gas prices are falling for  the eighth week straight – and the average price at the pump has officially dropped below $4.00 nationwide.
  • And as prices at the pump come down, consumers are feeling optimistic about inflation continuing to drop under President Biden’s leadership.

This week, the Senate passed the Inflation Reduction Act, a key part of President Biden’s agenda, to lower the cost of essentials:

  • The Inflation Reduction Act will make prescription drugs cheaper by allowing Medicare to negotiate lower prices and capping out-of-pocket costs at $2,000 annually.
  • It will also lower health insurance costs for 13 million Americans by an average of $800 a year, under the Affordable Care Act. 
  • It will save families an average of $300 a year on their energy bills while strengthening American production of clean energy like wind and solar.
  • The Inflation Reduction Act delivers the most significant climate action in history and will help the U.S. reduce carbon emissions by over 40% by 2030. 
  • This legislation is fully paid for by making big corporations pay their fair share — and does not raise taxes a single cent on anyone making less than $400,000 a year.
  • It will reduce the deficit beyond the record setting $1.7 trillion deficit reduction this year, which will help fight inflation as well. 

This builds on other positive economic news in recent weeks, including a blockbuster jobs report on Friday:

  • The U.S. economy added 528,000 jobs last month, far exceeding expectations, as we have officially regained all jobs lost during the pandemic.
  • The unemployment rate has hit a 50-year low under President Biden’s leadership.
    • This includes significant jobs recovery for Latino Americans – today, the Latino unemployment rate is 3.9% after climbing to 19% under the previous administration.
  • The Biden-Harris Administration has created 5 times more jobs than the last three Republican administrations combined.

President Biden is determined to build on this historic progress, including by signing the Inflation Reduction Act when the House sends it to his desk, to lower costs for American families, create jobs, and boost our economy for years to come.