Biden officials blame pandemic for surge in inflation across US

WASHINGTON • With US President Joe Biden's poll numbers slumping under a surge in inflation, administration officials have defended his economic policies and blamed the sharp price rises squarely on the Covid-19 pandemic.

Accelerating inflation hit a 30-year peak last month, with hikes in the cost of everything from groceries to petrol slamming consumer confidence and undermining Mr Biden's efforts to sell a package of huge spending plans.

A day before the President was due to sign a US$1.2 trillion (S$1.6 trillion) infrastructure spending Bill, a Washington Post-ABC poll published on Sunday showed Mr Biden's approval rating at a new low of 41 per cent, largely driven by growing public concern over his handling of the economy.

Taking to the Sunday morning TV talk shows, White House economic adviser Brian Deese acknowledged inflation was "high right now", but insisted that it was a worldwide trend triggered by the pandemic, and not a consequence of administration policy.

"What we have said consistently is that the pandemic and economy are interlinked," Mr Deese told CNN's State of Union, citing global supply chain blockages triggered by Covid-19 as a major inflationary factor.

Top White House officials have argued that Mr Biden's infrastructure legislation and an even bigger social welfare deal worth up to US$1.85 trillion would tame inflation in the long run, easing supply bottlenecks and reducing the family cost of childcare and prescription drugs.

Despite Democrat assurances that the spending drive is paid for by tax increases, Republican opponents insist it will only further aggravate price rises - an argument that has gained traction after last month's inflation figures.

The 6.2 per cent surge in October surprised economists and the White House alike, and put Mr Biden's administration on the defensive at a time when it would rather focus on promoting the infrastructure Bill.

In an interview broadcast on CBS' Face the Nation on Sunday, Treasury Secretary Janet Yellen echoed the line that Covid-19 was the main driver of the surge in consumer prices.

"It's important to realise that the cause of this inflation is the pandemic," Dr Yellen said. "And if we want to get inflation down, I think continuing to make progress against the pandemic is the most important thing we can do."

Mr Biden on Sunday appointed prominent former mayor Mitch Landrieu to coordinate implementation of the massive new infrastructure law and oversee the disbursement of its funds.

In his role as senior adviser, the former New Orleans mayor "will oversee the most significant and comprehensive investments in American infrastructure in generations", the White House said in a statement.

The package, recently passed by Congress after months of wrangling, is aimed at creating millions of high-paying jobs, upgrading crumbling roads, bridges, waterways and ports and strengthening supply chains.

Mr Biden was yesterday scheduled to sign the landmark Bipartisan Infrastructure Deal into law.

Mr Landrieu, 61, is no stranger to managing crises.

He took over as mayor of New Orleans in 2010 in the aftermath of the deadly Hurricane Katrina as the recovery of the famed Gulf Coast city stalled. He also served as Louisiana's lieutenant-governor.

Mr Biden has stressed to Americans that it will be a matter of weeks or months before the public begins to see the real effects of the Bill, which also intends to expand broadband access and the number of electric car charging stations across the US, along with a slew of other projects.

The President is counting on the programme to produce an impact - at least politically - before Americans vote in midterm elections next November.

AGENCE FRANCE-PRESSE