What do US politicians agree on? Inflation is the other party’s fault: Marty Fridson
SPY•August PCE inflation rose 0.3% month over month and reached 3.4% year over year, below consensus estimates. Marty Fridson argues that politicians selectively use inflation statistics to blame the opposing party.
1. August inflation figures
PCE inflation rose 0.3% in August, bringing the 12-month rate to 3.4%, below consensus estimates. Fridson says elected leaders often present economic data with less nuance than economists and analysts.
2. A historical example
During the 1963 debate over federal wheat supports, Republicans blamed the Kennedy administration for higher bread prices, while Democrats said wheat made up only a small portion of bread’s retail cost. The Agriculture Department emphasized food’s share of household income, which had fallen as family incomes rose.
3. Competing cost claims
Fridson says politicians now often highlight either recent inflation slowdowns or how much prices have risen over a longer period. In September, Democratic senators said households had incurred more than $4,200 in additional costs since Donald Trump took office in January 2025; Republican senators said costs were $2,881 below what they would have been under the pace during a comparable portion of Joe Biden’s term.
