(NEW YORK) — Recycling on a large scale has always proved to be a challenging endeavor, especially as the production of plastic surged exponentially after the 1970s.
But new technology made to streamline the process may help the U.S. make strides in eliminating the amount of plastic that ends up in landfills.
Nearly 300 million tons of waste is produced in the U.S. every year, according to the Environmental Protection Agency. Only a fourth of that solid trash is recycled.
The need for automation in recycling centers is “obvious,” Matanya Horowitz, founder and CEO of AMP Robotics, told ABC News, especially since positions to sort through the trash do not pay well and can be dangerous.
Items such as bowling balls, skis, fabric and dirty diapers often make their way to the sorting center, Joshua Taylor, the manager of the Denver recycling plant, told ABC News.
Workers are on their feet in front of a conveyor belt all day, and turnover is high, Taylor added.
“At AMP Robotics, we’re using robotics and artificial intelligence to solve some of the primary challenges of the recycling business,” Horowitz said.
When Horowitz first proposed the idea, the feedback he received from people in the robotics field was not encouraging, he said.
“Most people in robotics that I knew thought it was a terrible idea,” Horowitz said, adding that they were “skeptical of the problems.”
But Horowitz persisted, convinced that the idea could work despite what the experts said.
He and his design team used a “unique” approach involving the use of artificial intelligence to teach the systems to identify a plethora of different materials, whether they’re bottles or cans and whether they are misshapen or have food particles on them, eliminating limitations of previous sorting machines.
“What I saw in recycling, the whole industry was being held back by these core challenges,” Horowitz said. “And if you could develop a vision system that could identify material, even though it’s been smashed and folded and dirty, you could deal with those core challenges, and you would unlock a whole lot for the industry.”
At the Waste Management plant in Denver, an average of 32 tons of waste is processed every hour, Taylor said, describing the recycling center as “a tough place to work.”
“So, you can imagine, every hour we’re doing about one and a half tractor trailer full of recyclable materials through the plant,” he said.
Recycling centers can install the robots in facilities “with almost no change to their existing operations,” Horowitz said.
The recycling industry is not achieving its full potential, said Susan Collins, the executive director of the Container Recycling Institute, a nonprofit that provides information, consultation, technical assistance and tools for recycling.
About 44% of greenhouse gases in the U.S. come from products and packaging, meaning that making recycling more efficient “represents the largest portion of what we can do” to reduce emissions, she said.
“People don’t look to the lowly glass bottle or aluminum cans and think, ‘Oh, that’s an opportunity for me to save energy and save greenhouse gases,'” Collins said. “But it is, and it’s huge.”
(NEW YORK) — Inflation in the U.S. rose 8.5% in March, compared with the prior 12 months, marking the highest increase since 1981, according to the Labor Department’s Consumer Price Index.
Between February and March, inflation rose 1.2%, making for the biggest month-to-month jump since 2005.
According to several economists and other financial experts, high consumer demand in the economy — met with low supply — is the main factor driving inflation. The war in Ukraine is also driving up prices, specifically on oil and food, they said.
And the government is limited on intervening, according to experts who spoke with ABC News.
Experts also told ABC News that inflation is likely to be an issue in the coming months, one even saying they expect it to last for years.
Factors driving inflation
Consumers traditionally spend the bulk of their money on services, but during the pandemic, demand shifted toward goods, Stacy Tisdale, financial journalist and founder of Mind Money Media told ABC News.
“You saw that breakdown, you saw manufacturers not be able to keep up with that demand, you saw the challenges that manufacturers were having, because of COVID, then you saw the supply chain disruptions. And that’s kind of what’s underpinning all of this,” Tisdale said.
Strong consumer demand unmet with enough supply, makes for a main driver of inflation, experts said.
“The biggest factor driving up inflation has been extraordinarily strong demand, as consumers have more money in their bank accounts, lower interest rates to borrow at stronger stock prices and a lot of money they saved up because they didn’t spend much in 2020,” Jason Furman, a professor of practice at Harvard and a former top economic advisor to President Barack Obama who served as a chief economist and member of the cabinet, said.
“That’s been exacerbated more recently by things like the higher oil prices due to [Russian President Vladimir] Putin’s invasion of Ukraine,” Furman added.
Some experts think stimulus money exacerbated the increased demand.
“We pumped a lot of demand into the economy, particularly the American Rescue Plan in early 2021, giving everybody $1,400,” said David Wessel, the director of the Hutchins Center on Fiscal and Monetary Policy at Brookings.
“And with the benefit of hindsight, we probably put too much money in people’s pockets — they want to spend it, but the supply side of the economy is unable to accommodate the rapid increase in demand that comes both from the fiscal stimulus and from the fact that people are beginning to relax about the pandemic,” Wessel said.
Furman said inflation in the U.S. is worse than in other developed nations, in part, because of stimulus funds from the government.
“The United States has more inflation than any other major advanced economy. Probably because we’ve had a larger fiscal response. No other countries sent out checks on the scale that we did,” Furman said.
Other experts agree that stimulus payments contributed to inflation, but say the mass distributed payouts are not the cause. The government handed out three rounds of checks to Americans during the pandemic as financial relief, in hopes of boosting the economy.
“You could certainly make the case … that the stimulus package definitely contributed to the inflation rate, but you didn’t have big stimulus packages in Europe. And they’re still looking at 7.5% inflation,” Dean Baker, a senior economist and co-founder of the Center for Economic and Policy Research, told ABC News.
The Russian invasion of Ukraine is driving gas prices “through the roof” and creating concerns about crops coming out of Ukraine, which is a major global exporter of wheat, Baker said.
“There’s real concerns that a lot of that isn’t going to be planted or isn’t able to be exported. And we’ve seen a big rise in the price of wheat, a number of other farm commodities in the last two months or so since the war,” Baker said.
What the government can do
With increased consumer demand being the main driver of inflation, experts said there is not much the government can do to fight inflation, but they agree that the Federal Reserve should raise interest rates.
“The main thing is for the Fed to raise interest rates, and to start selling off assets. The goal of that is to make it more expensive to borrow money to buy a house or to buy a car, or for a business to buy plants and equipment. And that will cool off demand in the economy, slow economic growth and slow inflation,” Furman said.
“How much it does any of those is incredibly uncertain,” he added.
Baker agreed and said that “having a zero interest didn’t make sense given the strength of the labor market.”
To help bring down oil prices, Baker said if the government commits to supporting the oil market to some effect, it could encourage oil companies, who were burned by the 2014 collapse of oil prices, to drive up production faster.
“That’s fresh enough in people’s minds that they’re reluctant to go headfirst into drilling. So one way to try to counter that is the Biden administration … could make a commitment that they’ll support the market,” Baker said.
Such a commitment could be that if oil prices fall below a certain amount, the government would buy barrels to restock the strategic reserve, and therefore support oil prices, Baker said.
Wessel suggested that the Biden administration could also repeal Trump-era tariffs, which could drive down the price of imports; raise taxes; or cut spending to drive demand out of the economy.
What is to come?
Inflation could remain an issue for the coming months, but experts disagree on how long it could last.
“I saw some signs in the [Consumer Price Index] that suggests that we may be past the worse, but I expect inflation to be high at least for another 18 to 24 months,” Wessel said.
Furman said that inflation could last for years.
“Some of the inflation is probably transitory. I don’t think the underlying true inflation rate in the economy is 8%. But it probably isn’t 2%, either. And so inflation should start to come down a bit, but it’s unlikely to come anywhere near where the Fed wants it to come,” Furman said.
“It easily could remain high for years to come. We could get lucky and it could just all magically disappear. [Or] we could have a recession, which could make it disappear. I think the most likely scenario though, is that it persists for several years,” Furman said.
“People should be planning for interest rates going higher, so things like mortgages and car loans getting more expensive. They should plan on prices staying high. They should, though, understand that it’s still a very, very strong labor market. So there’s a lot of job options out there,” Furman said.
(NEW YORK) — With inflation at a 40-year high and food costs continuing to rise, it’s time to take stock of how we approach cooking to make the most of our money in each meal.
What’s the issue
Labor and supply shortages from the COVID-19 pandemic have continued to add a strain on wallets when it comes to price increases on food. Whether it’s picking something up for lunch or cooking at home, both index categories have seen steady rises in pricing that has been passed onto consumers.
In March, the overall increase in the food index was one of the three largest contributors to inflation, according to the latest Labor Department report.
The food at home index, which includes groceries, saw a 1.5% jump in the last month. Plus, fresh produce climbed another 1.5% this month after an already 2.3% increase in February for fruits and vegetables. Since the same time period last year, the food at home index has jumped 10% annually, also marking the biggest increase since 1981.
According to the United States Department of Agriculture (USDA), monthly grocery budgets depend on three factors: The number of people in the household; age and gender of each person; and monthly household budget. The average cost of groceries for U.S. households was $4,942 annually or close to $12 per month, based on 2020 data from the U.S. Bureau of Labor Statistics.
As people continue to cook more at home amid the pandemic, the demand for ingredients and cost-effective meals has also skyrocketed.
How to curb costs
Leslie Ghize, a consumer strategist expert and executive vice president at business development firm Doneger TOBE, explained to GMA that inflation influences can be broken up into three main categories: “Indicators of sentiment, behavioral changes in consumers and business responses,” she said.
For example, the rise of cost on groceries and food has been a catalyst for content creators on TikTok to share smart home cooking hacks.
“TikTok has become a destination for money saving tips and tricks. While thrifting proliferates on FashionTok, food influencers offer penny-pinching ideas like recipes that only require a few ingredients and techniques to help produce last longer,” Ghize explained. “Think: storing mushrooms in a paper bag and keeping lettuce in a glass jar.”
Recipe for successful at-home meals that stretch your dollar
Savyy home cooks and food creators, cookbook authors, grocery experts and more will curate recipes and food launchpads to iterate on an array of money-saving meals with GMA Food.
Highlighting one main ingredient that is cost effective — like a bulk pack of chicken thighs — is the perfect opportunity for recipes that use cooked chicken thighs in three variations to ultimately deliver multiple meals with different flavors and techniques. Like this recipe from cookbook author Ali Slagle that feeds four people with chicken thighs and uses other smart money-conscious ingredients like frozen peas.
Additionally, if the cost of a particular ingredient category, such as pork or beef, is on the rise, expect to find a recipe that instead embraces seasonal produce items that are abundant and more cost-efficient paired with pantry staples like grains and beans.
From buying the right foods in bulk and using an ingredient in its entirety — stems to leaves — to purposely cooking more of one dish in batches that can be transformed into a different next day lunch or dinner, these money-saving meals will make the most of any budget.
(NEW YORK) — The CEO of General Motors Mary Barra sat down exclusively with ABC News’ Rebecca Jarvis to introduce their newest electric vehicle the Cadillac LYRIQ and take the first ride.
In 2021, the company announced that it is committed to selling all-electric vehicles by 2035.
“I think it gets into the power of General Motors brands,” said Barra. “First of all, we’re a full line manufacturer. We have four brands and we have vehicles at every price.”
Elon Musk’s Tesla currently dominates the U.S. electric vehicle market, owning 60% of shares in the space.
Barra said the new version of the American classic is set to take Tesla head-on.
“If you think about it right now, [electric vehicle] sales are very low. They’re in single digits. By 2025, and then beyond, we want to start dramatically growing shares,” said Barra. “We sell more vehicles than anyone else does with the brands, and we have loyal consumers, so I’m really excited about our future.”
Watch the full story on “Good Morning America” FRIDAY at 7 a.m. ET on ABC.
(WASHINGTON) — House committee investigators found that consultants from consulting firm McKinsey & Company advised opioid manufacturers while the company was on federal contract with the Food and Drug Administration’s drug approval unit, an arrangement that lawmakers say may have breached federal conflict of interest rules, according to an interim report published Wednesday.
According to the report published by the House Oversight Committee, McKinsey consultants allegedly leveraged their work with the FDA to attract business from companies like Purdue Pharma, one of the leaders in developing opioid drugs. And according to the interim report, McKinsey consultants appear to have tried to influence government officials to benefit their opioid clients, raising questions about the company’s firewall between government contracts and private sector work.
At the same time the FDA was relying on McKinsey’s advice to ensure drug safety and protect American lives, the firm was also being paid by the very companies fueling the deadly opioid epidemic by allegedly helping to defend opioid manufacturers against tougher regulation of these dangerous drugs, Rep. Carolyn Maloney, D-N.Y., the committee’s chair, wrote in a statement.
Maloney called McKinsey’s conduct particularly “egregious considering its central role in driving a public health crisis that has killed half a million Americans.”
McKinsey, in response to the new release, wrote in a statement that it “will review the report” and “continue to cooperate with the Committee to address further questions,” but defended its work for the FDA and for its opioid clients, saying it is committed to guarding against conflicts of interest.
In the statement, McKinsey wrote that it reviews its potential conflicts and “will not do the work” if those potential conflicts “cannot be appropriately addressed.” It said its work for the FDA were administrative and operational, “including improvements to organizational structures, business processes and technology,” not related to regulatory decisions or specific pharmaceutical products.
But the firm, in the statement, also admitted that its past private sector opioid work — which it stopped in 2019 — while lawful, “fell short of the high standards we set for ourselves” and that it settled with all 50 state attorneys general to “provide fast, meaningful support to communities across the United States that have been affected by the opioid crisis.”
The new House committee report, in particular, sheds light on questions about the firm’s conflicts of interest policies, including details about at least 22 McKinsey consultants who allegedly worked for both the FDA and opioid manufacturers on related topics, sometimes at the same time.
For example in 2011, at least four McKinsey consultants that were working on a $1.8 million FDA contract to address “the adverse impact of drugs on health in the US” were working for Purdue at the same time, “including on projects designed to persuade FDA of the safety of Purdue’s opioid products,” the committee found, according to the report.
In 2017, a McKinsey partner allegedly worked on a $2.7 million contract to help modernize the FDA’s Office of New Drugs while at the same time advising Purdue on maximizing the market potential of a new opioid, according to the report.
The report also alleged that McKinsey consultants with Purdue ties attempted to influence public health officials in the Trump Administration on the topic of the opioid epidemic.
The committee wrote that some of McKinsey consultants “formed part of what one consultant called McKinsey’s mini ‘army’ here at Purdue,” suggesting McKinsey’s cozy relationship with Purdue during the time period when “numerous McKinsey consultants worked for both FDA and Purdue, both officially and unofficially.” But the report didn’t say whether the particular McKinsey consultant that used the phrase “mini army” was also working on FDA projects.
The committee report also looked at McKinsey’s alleged lack of its potential conflicts of interest disclosures to the FDA, saying the lack of disclosure potentially violated contract requirements and federal law.
McKinsey spokesperson Neil Grace has previously told ABC News Mckinsey had made necessary conflict of interest disclosures, saying that the company’s consulting work for pharmaceutical firms “did not create a conflict of interest” regarding its work with the FDA, because it “has not advised the FDA on regulatory policy or on specific pharmaceutical products,” and “given the absence of a conflict of interest, there was no requirement for any McKinsey disclosure.”
In recent weeks, lawmakers have increasingly trained their sights on McKinsey and other contractors for allegedly accepting government contracts while pursuing outside business opportunities that may present a conflict of interest.
Earlier this month, Senate Democrats called on the Department of Health and Human Services inspector general to investigate McKinsey over alleged conflict of interest violations tied to its work with major pharmaceutical companies.
Lawmakers have also introduced legislation meant to strengthen conflict of interest safeguards for contractors like McKinsey.
(NEW YORK) — A popular Easter candy was recalled weeks before the holiday.
Earlier this month, Ferrero announced through the Food Standards Agency it would take “the precautionary action of recalling selected batches of Kinder Surprise because it might be contaminated with Salmonella. Only Kinder Surprise products manufactured in Belgium are affected.”
Now, the U.S. Food and Drug Administration cited the international press release and warned Americans of the additional potentially at-risk products.
“Ferrero U.S.A., Inc. of Parsippany, New Jersey is voluntarily recalling its Kinder Happy Moments Chocolate Assortment and Kinder Mix Chocolate Treats basket, because the product may be contaminated with Salmonella Typhimurium,” the FDA wrote on Tuesday.
The Centers for Disease Control and Prevention alerted consumers of the Kinder Happy Moments Milk Chocolate and Crispy Wafers Assortment Kinder Mix Chocolate Treats Basket recall on Twitter.
KINDER CHOCOLATE RECALL: Do not eat or give away recalled Kinder chocolate. It may be contaminated with Salmonella.
•Kinder Happy Moments Chocolate Assortment
•Kinder Mix Chocolate Treats Basket
As of time of publication, according to Food Safety News, the Salmonella outbreak linked to the chocolate products has sickened nearly 100 people total across multiple countries throughout the U.K., Ireland, Germany, Sweden and the Netherlands.
The affected product pack sizes listed by the FSA are 20g and 20g x 3 with best before dates between July 11, 2002 and Oct. 7, 2022.
Click here for more information on the recall, refunds and contact information for the Ferrero consumer care team.
(NEW YORK) — Inflation is at its highest point in nearly 40 years and the cost of food has steadily climbed month over month across multiple categories from groceries to takeout.
The Labor Department announced Tuesday that the Consumer Price Index jumped 8.5% in March compared to a year ago, which is the sharpest increase since December 1981.
Prices have soared as a result of massive consumer demand, supply chain disruptions from labor shortages to increasing fuel costs as well as global food and energy markets made worse by the current Russian war against Ukraine.
On Monday, ahead of the latest CPI numbers being released, White House Press Secretary Jen Psaki addressed the media and said they expected headline inflation on food “to be extraordinarily elevated due to Putin’s price hike.”
While the new CPI was largely in line with expert predictions, inflation climbed 1.2% compared to last month and consumers have seen the impact, especially on food products.
“It is a reminder to us — that we need to do more to reduce cost for the American people,” Psaki continued. “This data will be a reminder of the need to do something and take additional steps.”
In March, the overall increase in the food index was one of the three largest contributors to inflation, according to the report Tuesday.
The food at home index, which includes groceries, saw a 1.5% jump in the last month. Plus, fresh produce climbed another 1.5% this month after an already 2.3% increase in February for fruits and vegetables. Since the same time period last year, the food at home index has jumped 10% annually, also marking the biggest increase since 1981.
The meats, poultry, fish and eggs index within the food at home bracket has gone up 13.7% since last year. Dairy and other at home grocery food groups ranged from a 7 to 10.3% increases.
Products like “meats, poultry, fish, and eggs increased 1% percent in March, while the index for cereals and bakery products rose 1.5% and the index for nonalcoholic beverages increased 1.2% over the month,” the report stated. “The dairy and related products index also increased 1.2% in March.”
The food away from home index — which spans limited service options like coffee shops to sit down restaurants — only rose 0.3% in March. But in the last year, the category rose 6.9% overall which was the largest 12-month increase since December 1981.
Consumers have felt the pinch and taken notice of pricier food products, especially with aspects of daily life resuming in the U.S., like returning to the office and getting back into a lunch routine.
Although many Americans were quick to tap or swipe a credit card for the convenience of sandwiches and salads, the prices of a bowl of greens has gone up 11% since last year, according to Square. The technology company told ABC news last month that in a 28-day rolling average of standard lunch items nationally, it found the cost sandwiches has gone up 14% and wraps 18% since last year.
The one contrast of the report was for food at employee sites and schools. That category declined 30.5% over the past year and reflects the widespread implementation of free lunch programs.
(NEW YORK) — From snacks and condiments to drinks, more consumer product goods have leaned into environmentally responsible practices. As food businesses continue to adapt to the times, it’s easier than ever for shoppers to support brands with products that taste great and help the earth along the way.
Whether it’s a fully sustainable supply chain, ethically sourced ingredients, upcycling or zero-waste packaging, these are a handful of brands who are doing it right:
West~bourne
The zero-waste pantry line from plant-based restauranteur and chef Camilla Marcus utilizes low-impact plastic-free packaging such as sustainably-sourced wood cellulose pouches, sugarcane paper labels and soy ink.
The California-based company commits to low-impact products and a transparent supply chain, offsetting its carbon footprint on each order through investing in The Garcia River Project, a redwood forest preservation and management project that protects carbon reservoirs, preserves wildlife habitats, reduces the risk of wildfires and safeguards the California watershed.
Blue Stripes
Founder and CEO Oded Brenner left his successful international chocolate restaurant chain to forge a new path in the industry working with farmers in Ecuador to utilize the entire cacao fruit — shells, beans, fruit and all — to create wholesome nutritent-rich treats that take upcycled food to the next level.
“I am thrilled to finally share Blue Stripes, an urban cacao wellness brand, with the world and showcase the diversity of the cacao fruit,” Brenner said. “Especially because until today more than 70% of the fruit was wasted, and by using the entire fruit, we’re forming a sustainable structure that is a win/win for the consumer, farmer and the planet.”
His 15 products help curb wasteful practices and utilize every aspect of the crop; from the whole granola that’s made with a proprietary cacao shell flour to the cacao water made from the white, fleshy pulp that surrounds the beans.
“Upcycling ingredients is not just a way of bringing delicious products to consumers, but is also our duty to Mother Nature,” he added.
Sun & Swell
This zero-waste, plant-based, organic, healthy foods brands is helping alleviate the snack industry of plastics with their fully compostable packaging. With sustainability as its main priority, the company works to create a circular food economy by turning its over 100 products’ packaging back into farmable soil.
“We offer a send back program where [customers] send the used packages back in a prepaid return envelope and we will compost for them,” the company stated. “We have a number of composting partners and once we sort through the returned packages at our headquarters — we bring them to our partners to compost. Our bags will decompose within 180 days in an industrial compost setting.”
LesserEvil
The brand is on a mission to make healthy, organic, less-processed and sustainable snacks more affordable and accessible for everyone.
“We understand that the products we sell have an effect on not just our own health but on that of the planet,” CEO Charles Coristine said in a statement. “The agricultural practices — and their resulting waste practices — that bring food to our customers’ homes directly impact the environment.”
From plant-based Sun Poppers made from upcycled watermelon and pumpkin seeds and PeaNOTS made with water-efficient organic peas, LesserEvil offers a wide range of sustainable snacks.
The company also partners with NEO Plastics to package all of its snacks and help minimize waste and their overall carbon footprint.
ZenWTR
Not many beverage brands can boast a sustainability model that is plastic negative — a company that supports companies in the reduction of disposable plastic until its complete elimination. In fact, ZenWTR was the first and only to receive such certification for its innovative bottles, which are made of 100% recycled, certified ocean-bound plastic.
The vapor-distilled alkaline water company supports new recycling economies by creating demand for ocean-bound plastic and is on track to rescue 50 million pounds of it by 2025.
The brand’s unique supply chain — rescuing and reusing this category of waste to create a product — could change how other food and beverage brands think about plastic. Plus, 1% of its sales go directly to charities and organizations that are dedicated to protecting the world’s oceans and marine environments on top of recycling education and advocacy.
Minor Figures
The recently certified B Corp and sustainably minded coffee company makes 100% plant-based, dairy- and refined sugar-free products for coffee lovers, baristas and a better planet.
The company, which is one of a small handful of carbon neutral food and beverage companies, called it’s certification earlier this month, “more than just a sustainability label” but rather, “a movement with the collective goal of transforming the global economy to benefit people, communities, and the planet.”
“At the time of writing, we’re one of just 4,856 B Corps globally and we’re proud to be among the ranks of companies setting the new standard for the way business should be done,” the company said.
Compostic
While not a food product for consumption, this company said it created the first 100% home-compostable, zero-waste functional alternative to Cling Wrap and Resealable Bags. Plus, the easy sustainable swaps break down in home compost quicker than an orange peel.
(MENLO, Iowa) — President Joe Biden traveled to Iowa on Tuesday for his first time as president to announce new efforts to bring down gas prices as the administration faces an 8.5% jump in the consumer price index compared to a year ago, which it attributes mostly to what he called “Putin’s Price Hike.”
“Your family budget, your ability to fill up your tank, none of it should on hinge on whether a dictator declares war and commits genocide a half a world away,” Biden said, appearing to ad lib that Russia’s actions in Ukraine amount to “genocide” for the first time. The U.S. government has an internal process for designating whether genocide has occurred, and other Western nations haven’t made the determination.
Biden was asked directly last week if he thought the atrocities in Bucha were genocide, as Ukrainian President Volodymyr Zelenskyy claimed, but responded at that time, “No, I think it is a war crime.”
But on Tuesday, he said: “Yes, I called it genocide. Because it has become clearer and clearer that Putin is just trying to wipe out the idea of even being able to be a Ukrainian. And the evidence is mounting.”
The president also offered brief remarks on the subway shooting in New York City from Menlo, Iowa, before pivoting to his plan to ease gas prices amid intensifying inflation.
The March CPI report released Tuesday by the U.S. Bureau of Labor Statistics showed inflation is at its highest point in the U.S. in more than 40 years as rising prices have an impact on consumers worldwide. Prices were up 1.2% compared to just a month ago, the report said, raising concerns that, if the Federal Reserve gets more aggressive in raising interest rates to temper inflation, that might trigger a recession.
“Putin’s invasion of Ukraine has driven up gas prices and food prices all over the world,” Biden said. “So everything is going up. We saw it in today’s inflation data. Seventy percent of the increase in prices in March came from Putin’s price hike in gasoline.”
White House press secretary Jen Psaki tried to preemptively cushion the blow of the report numbers on Monday. She said the White House expected a large difference between core and headline inflation, pointing to the price of gas as the main reason for the discrepancy.
“Just as an example, since President Putin’s military buildup in January, average gas prices up more than 80 cents. Most of the increase occurred in March and gas prices, at times, prices were up more than a dollar above pre-invasion level. That roughly 25% increase in prices will drive tomorrow’s inflation rating,” Psaki said.
To address those prices, Biden announced Tuesday he issuing a temporary, emergency waiver for the summer to allow the sale of “E-15” — a blend of gas with 15% ethanol, rather than the usual 10%, which the White House says will bring down gas prices by 10 cents a gallon. Usually, E-15 is not sold in the summer because it’s believed to add to smog.
“The Environmental Protection Agency is planning to issue an emergency waiver to allow E15 gasoline that uses more ethanol from homegrown crops to be sold across the United States this summer in order to increase fuel supply,” Biden said. “It’s not going to solve all our problems. But it’s going to help some people and I’m committed to do whatever I can to help. Even if it’s an extra buck or two in the pockets.”
But the move will have a limited impact: Only 2% of gas stations around the country carry E-15, mostly in the Midwest. The White House countered a question from ABC News on whether the impact would be insignificant for Americans.
“Ultimately this is about giving Americans more options and more flexibility,” a White House official said ahead of the president’s remarks. “President Biden knows that every cent matters and families will see savings even after taking into consideration the difference in energy efficiency.”
Inflation and even gas prices have been on the rise even before the invasion of Ukraine. A new ABC News/Ipsos poll found Americans are more likely to place a “great deal” or a “good amount” of the blame for the price increases on Democratic Party policies (52%) and Biden (51%) than on Republican Party policies (33%) and former President Donald Trump (24%). A strong majority of Americans (68%) also disapproves of the way Biden is handling gas prices.
Biden’s trip to Iowa comes with the midterm elections seven months away. It’s a state he spent a lot of time in amid the 2020 campaign, but ultimately lost to former President Donald Trump by nine points.
While his remarks are set to focus on his administration’s actions to lower gas prices and the bipartisan infrastructure law passed last year, Biden might feel obligated to address Tuesday’s report, which showed increases in prices for gasoline, rent and food were the largest contributors to inflation for Americans. Gasoline prices rose 18.3% compared to a month ago and were a major contributor to inflation; other energy prices also increased. Food prices increased by 1% and the food at home prices by 1.5%.
Aside from food and energy, rent was the biggest factor in the price increases. Airline fares, household furnishings and operations, medical care and motor vehicle insurance also contributed to inflation. Used cars and trucks fell 3.8% compared to a month ago.
The report, though in line with expectations, does nothing to temper concerns that the Federal Reserve has a tough job ahead of it in cooling this inflation without sparking a recession.
ABC News’ Sarah Kolinovsky and Zunaira Zaki contributed to this report.
(MENLO, Iowa) — President Joe Biden traveled to Iowa on Tuesday for his first time as president to announce new efforts to bring down gas prices as the administration faces an 8.5% jump in the consumer price index compared to a year ago, which it attributes mostly to what the White House calls “Putin’s Price Hike.”
The March CPI report released Tuesday by the U.S. Bureau of Labor Statistics showed inflation is at its highest point in the U.S. in 41 years as rising prices have an impact on consumers worldwide. Prices were up 1.2% compared to just a month ago, the report said, raising concerns that, if the Federal Reserve gets more aggressive in raising interest rates to temper inflation, that might trigger a recession.
White House press secretary Jen Psaki tried to preemptively cushion the blow of the report numbers on Monday. She said the White House expected a large difference between core and headline inflation, pointing to the price of gas as the main reason for the discrepancy.
“Just as an example, since President Putin’s military buildup in January, average gas prices up more than 80 cents. Most of the increase occurred in March and gas prices, at times, prices were up more than a dollar above pre-invasion level. That roughly 25% increase in prices will drive tomorrow’s inflation rating,” Psaki said.
To address those prices, Biden will announce he plans to issue a temporary, emergency waiver for the summer to allow the sale of “E-15” — a blend of gas with 15% ethanol, rather than the usual 10%, which the White House says will bring down gas prices by 10 cents a gallon. Usually, E-15 is not sold in the summer because it’s believed to add to smog.
But the move will have a limited impact: Only 2% of gas stations around the country carry E-15, mostly in the Midwest. The White House countered a question from ABC News on whether the impact would be insignificant for Americans.
“Ultimately this is about giving Americans more options and more flexibility,” a White House official said. “President Biden knows that every cent matters and families will see savings even after taking into consideration the difference in energy efficiency.”
Inflation and even gas prices have been on the rise even before the invasion of Ukraine. A new ABC News/Ipsos poll found Americans are more likely to place a “great deal” or a “good amount” of the blame for the price increases on Democratic Party policies (52%) and Biden (51%) than on Republican Party policies (33%) and former President Donald Trump (24%). A strong majority of Americans (68%) also disapproves of the way Biden is handling gas prices.
Biden’s trip to Iowa comes with the midterm elections seven months away. It’s a state he spent a lot of time in amid the 2020 campaign, but ultimately lost to former President Donald Trump by nine points.
While his remarks are set to focus on his administration’s actions to lower gas prices and the bipartisan infrastructure law passed last year, Biden might feel obligated to address Tuesday’s report, which showed increases in prices for gasoline, rent and food were the largest contributors to inflation for Americans. Gasoline prices rose 18.3% compared to a month ago and were a major contributor to inflation; other energy prices also increased. Food prices increased by 1% and the food at home prices by 1.5%.
Aside from food and energy, rent was the biggest factor in the price increases. Airline fares, household furnishings and operations, medical care and motor vehicle insurance also contributed to inflation. Used cars and trucks fell 3.8% compared to a month ago.
The report, though in line with expectations, does nothing to temper concerns that the Federal Reserve has a tough job ahead of it in cooling this inflation without sparking a recession.
ABC News’ Zunaira Zaki contributed to this report.
