Pelosi: Jump in Consumer Price Index Demonstrates Need for New Economic Recovery Stimulus Package

Press Release

Speaker Nancy Pelosi today issued the following statement today in reaction to the 1.1 percent jump in the Consumer Price Index (CPI) in June—the largest one-month increase in this key measure of inflation since 1982. In the last 12 months, the CPI rose 5 percent—the largest jump over a one-year period since 1991.

"Rising prices pose a serious threat to the standard of living of every American, particularly in light of the fact that real incomes have dropped by nearly $1,000 since 2001. After years of an energy policy written by and for the oil companies, and inaction on the greatest challenges to our long-term prosperity as a nation, Americans are earning less, yet paying more for everything from groceries and gas to college tuition and health care. Federal Reserve Chairman Ben Bernanke's testimony to Congress this week underscores the squeeze most Americans are feeling, reporting that American worker productivity is up—while wages are down.

"Congress and the President must work together to restore our nation's economic strength. That's why we are working to craft a new economic recovery stimulus package—a real, American jobs bill—which will help Americans grappling with rising prices, help get our economy back on track, and help renew the American Dream.

"The leading economists House Democrats met with this week agreed that the Recovery Rebates that 130 million American families are receiving as a result of our first economic stimulus effort this year are making a difference—but more is needed. We remain hopeful that President Bush and congressional Republicans will work with us once again to address this critical challenge."

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