Yes, inflation is down. No, the Inflation Reduction Act doesn’t deserve the credit

By JOSH BOAK and PAUL WISEMAN
Associated Press

WASHINGTON (AP) — Even President Joe Biden has some regrets about the name of the Inflation Reduction Act. As the giant law turns 1 on Wednesday, it’s increasingly clear that immediately curbing prices wasn’t the point. Price increases have indeed cooled over the past year, with the inflation rate dropping from 9% to 3.2%. But economists say little to none of the drop came from the law. Harvard University economist Jason Furman says he can’t “think of any mechanism” by which the law would have reduced inflation. Furman adds that the law could eventually help to lower electricity bills, given its investments to address climate change.