Biden says inflation 'top priority' as US prices hit 30-year high

WASHINGTON (AFP) - President Joe Biden has made fighting US inflation his "top priority" after government data showed it reached a 30-year high last month, underscoring the continued threat to his presidency and the economic recovery.

The sharp spike in the consumer price index (CPI) in the Labor Department data released Wednesday surprised economists and the White House alike, and came as Biden heads to Baltimore to promote the $1.2 trillion infrastructure overhaul he argues can turn the tide.

"Inflation hurts Americans pocketbooks, and reversing this trend is a top priority for me," Biden said after the report was released.

"I am travelling to Baltimore today to highlight how my infrastructure bill will bring down these costs, reduce these bottlenecks and make goods more available and less costly."

Inflation had remained muted in recent years, but roared back with a vengeance this year as American businesses began resuming normal operations with the help of Covid-19 vaccines.

Prices were pressured by high demand from consumers flush with cash combined with shortages of US workers and snarls in supply chains worldwide that slowed deliveries of crucial components such as semiconductors, that are critical for producing automobiles and electronic devices.

While Biden has argued that the increases will prove temporary, they have given his opponents a potent counterargument to the spending plans he has staked his presidency on as his approval ratings sag.

He scored a victory when Congress passed the infrastructure overhaul last week, but the $1.85 trillion Build Back Better plan to improve social services remains mired by infighting among Biden s Democrats who narrowly control the legislature.

Democratic Senator Joe Manchin, who has objected to the plan s cost, tweeted following the CPI report saying, "By all accounts, the threat posed by record inflation to the American people is not  transitory  and is instead getting worse."