The consumer price index slightly declined in July, leading to a market surge

News broke on August 10 that the Consumer Price Index (CPI), a measure of the average change over time in consumer prices, slowed slightly in July to 8.5%, from 9.1% in June.

Markets “surged” on Wednesday following a 0.0% months increase on the Consumer Price Index. Bloomberg’s Joe Weisenthal explained that while falling gas prices was a dominant factor, “core inflation — which excludes food and energy—  also came in well below expectations (0.3% sequentially versus the 0.5% median estimate of economists).” 

CNBC: “Stocks soar, S&P 500 hits highest level in three months after key report shows slowdown in inflation.” [CNBC, 8/10/22]

President Joe Biden noted that the CPI inflation data showed 0.0% change in July

On August 10, Biden talked about the CPI data showing 0% inflation in July, saying “people are still hurting” but “we’re setting some signs that the inflation may be beginning to moderate.” 

Analysts say Biden is right and this may reflect a turning point

Economist and author Zachary Carter: Inflation in July was zero. In a Twitter thread, Carter explains, “Inflation in July was 0. Nobody is tricking you or conning you by stating that fact.” He continues: “It is also true that prices in July 2022 were 8.5% higher than they were in July 2021. That is because prices increased between July 2021 and June 2022. Prices stopped increasing in July 2022, which is why it is correct to say inflation was zero in July 2022.” [Twitter, 8/11/22]

Slate analyst: “It’s totally acceptable to cite the one-month change in prices if you want to convey how much inflation is speeding up or slowing down in real time.” Slate’s Jordan Weissmann, while writing that Biden is “is at risk of spiking the football early” in noting that inflation was at 0.0% for the month, notes, that “You can accuse Biden of omitting context, but he isn’t lying, making things up, or violating any kind of longstanding practice by economists and journalists.” in noting that inflation was at zero for the month. [Slate, 8/10/22]

Right-wing media figures argue that the inflation report showing a net zero increase in July is meaningless because it is month-to-month and could be because demand is lowering

Fox co-anchors Bill Hemmer and Dana Perino pushed back on White House economic adviser Jared Bernstein’s statement that inflation did not increase during July. Hemmer responded, “a lot of those price reductions reflect demand, too, in the economy and the consumer.” When Bernstein pointed to gas prices lowering, Hemmer pushed back saying, “So is demand. Demand is lowering, too. That's a big reason why gasoline is dropping the way it is.” The on-screen chyron during the segment stated: “Consumer prices in July up 8.5% from a year ago.” [Fox News, America’s Newsroom, 8/10/22] 

Fox News White House correspondent Peter Doocy disingenuously said that “the way the White House calculates things, when pierces are 8.5% higher than this time last year, that 8.5 actually could equal zero.” He went on to say that calculating inflation month-to-month is “not the way most economists do it.” Conservative economic commentator Steve Moore later added, “The reason that gas prices are coming down is because people aren't traveling as much in their car because they can't afford the high price of gasoline.” [Fox News, Your World with Neil Cavuto, 8/10/22] 

Accusations that the Biden administration is ignoring prices are still high 

Fox co-host Greg Gutfeld said Biden took “a premature victory,” in his “ridiculous new talking point.” Co-host Dana Perino accused the White House of saying that “wages are up so everyone should just be happy,” while co-host Jesse Watters argued Biden’s announcement was akin to him saying, “I just gave you a black eye but oh you know the swelling is going down a little bit.” [Fox News, The Five, 8/10/22]

On Fox Business, Wall Street Journal columnist Mary O’Grady said that “they are trying to take a victory lap,” and that Biden is “not acknowledging, you know, the continuing pain for consumers.” Host Elizabeth MacDonald called it a “confusing message on inflation,” pressing that “inflation is not at zero. They mean net zero. Falling gas prices dropped it below zero. But everything else is up on everything else, especially food and groceries.” [Fox News, The Evening Edit, 8/10/22]

On Newsmax, guest host John Bachman said that he’s “not sure how the president came up with the idea of zero inflation over the past month when the food and energy prices are stripped out, and even if he shifts the focus to last week's jobs report, inflation is still not zero.” [Newsmax, The Record with Greta Van Susteren, 8/10/22] 

Newsmax host Rob Schmitt said that “the Biden administration [is] desperately trying to spin today’s new inflation numbers as some kind of a win.” Congressional correspondent Kilmeny Duchardt said that “it’s a classic case, Rob, of playing politics with numbers,” adding, “There was no inflation in the month of July, but that doesn’t mean that inflation is not affecting the economy.” Schmitt went on to later claim, “CNN [is] gaslighting Americans to get them to believe that this very slight decrease in the inflation rate is something to celebrate.” [Newsmax, Rob Schmitt Tonight, 8/10/22]

Fox News anchor Harris Faulkner also criticized the announcement, saying, “I guess they haven’t been to the grocery store lately.” [Fox News, The Faulkner Focus, 8/11/22]

Newsmax’s John Bachman told his viewers: “repeat the lie enough and it becomes the truth. Now, here’s the real truth: Disregard what you hear from the White House.” Bachman continued, “Inflation, true, didn't go up last month per se, but prices, as [Sen.] Ted Cruz pointed out, are still much higher than they were last year.” [Newsmax, John Bachman Now, 8/11/22]

Claims of the Biden administration lying or intentionally misleading people

On CNBC’s Squawk Box, political strategist Frank Luntz said the announcement is “cynical. It's a destruction of the meaning of words. It's Orwellian at its worst.” [CNBC, Squawk Box, 8/10/22]

On Fox Business’ Kudlow, former Raegan economic adviser Art Laffer complained that Biden “never mentioned the month before where we had 17.8% inflation in that month” and that “he’s cherry-picking his numbers.” [Fox Business, Kudlow, 8/10/22] 

In a report, Doocy claimed that Biden’s inflation claim “is not true” because “prices are not up 0% since last year,” ignoring that inflation was at a net 0.0% only for the month of July. The report further put a damper on the inflation report, pressing that some “worry about the reason for the decline” in gas prices. [Fox News, The Special Report with Bret Baier, 8/10/22]

Right-wing radio host Stu Burguiere called Biden “disingenuous” and he has “ignored the main measure” of inflation. He pressed that listeners need to “realize these idiots are going to come out here and say this all day because they think you are so stupid, you just might believe it. And they know they're lying and they're going to do it anyway.” [The Blaze, The Glenn Beck Program, 8/10/22]

Newsmax host Chris Salcedo called the administration “spin doctors.” Guest Sean Spicer, former White House press secretary and the host of Spicer & Co, added that “it is unbelievable to say zero, creating the impression that inflation is zero when it still remains at a historic 40-year high, is unbelievable.” [Newsmax, The Chris Salcedo Show, 8/10/22] 

Fox News host Jesse Watters: “Today, President Biden walked up to the podium and lied to you.” [Fox News, Jesse Watters Primetime, 8/10/22] 

Fox host Brian Kilmeade said that in his announcement, Biden “ignored all the price increases from last year.” While guest hosting Tucker Carlson Tonight, Kilmeade claimed, “What Joe Biden didn't tell you is that zero inflation is only from June to July of this year, he ignored all the price increases from last year — you haven't. But hey, if inflation is zero, why do we need the Inflation Reduction Act, remember that?” [Fox News, Tucker Carlson Tonight, 8/10/22]

Fox host Laura Ingraham said, “It is Orwellian, the manipulation of language when real people are suffering.” Fox Business’ Larry Kudlow later added, “This crowd is kind of making a career out of, shall we say, cognitive dissonance or fraudulent statements.” [Fox News, The Ingraham Angle, 8/10/22] 

Fox correspondent Kevin Corke said, “Critics said the president doesn't understand simple math or he is gaslighting the American people.” [Fox News, Fox & Friends First, 8/11/22m] 

On Fox, The Heritage Foundation’s Kevin Roberts said “Joe Biden has never let the truth get in the way of his political opinion.” [Fox News, Fox & Friends First, 8/11/22]

Fox’s Steve Doocy suggested the announcement was “lies, damn lies, and statistics,” and Kilmeade claimed Biden is “not being honest.” Co-host Ainsley Earhardt added,  “They just look at the numbers and they find a number that might be appealing to them and then they run with that and they spin the story.” [Fox News, Fox & Friends, 8/11/22]

On Newsmax, co-host Katrina Szish argued that Biden’s announcement is “semantics at this point.” Her guest Republican strategist Erin Elmore agreed, accusing Biden of going on television to “brag and boast that he's lowered gas prices and that inflation is 0%,” while prices are still abnormally high. Szish later said, “They didn't take any responsibility for those numbers going up, but now to claim victory for those numbers sort of going down. Americans are not that stupid and also I think our memories are also not that short.” [Newsmax, Wake Up America, 8/11/22] 

Fox Business’ Maria Bartiromo: “This is more misinformation and disinformation.” [Fox News, America’s Newsroom, 8/11/22]

Fox Business’ Stuart Varney: Biden “knows that's not strictly accurate. He knows inflation remains at high levels, but he doesn't want to admit that to voters three months before an election.” He went on to say, “We know we're getting worse off no matter what the president says.” [Fox Business, Varney & Co, 8/11/22]