Statement on the Consumer Price Index for June

July 22, 1983

Once again, with today's release of the Consumer Price Index for June, we see evidence that a healthy economic recovery is underway, one that is better than anything most of the experts were predicting just a few months ago. The new CPI figure is especially good news for Americans living on fixed or modest incomes -- the people who suffer the most from the ravages of inflation. By keeping inflation down, our economic policy protects those Americans who are most vulnerable -- and that, not the inflationary policies of the big spenders, is an important part of fairness and compassion.

Between May and June, consumer prices rose by only .2 percent. Food prices actually declined, and the increase in gasoline prices tapered off considerably from recent months. Most important, the level of the CPI this June was only 2.6 percent higher than a year ago. That represents the lowest 12-month rate of increase in consumer prices in more than 15 years.

Taken together with yesterday's good news of 8.7-percent real economic growth in the second quarter of the year, it is clear that our program, and the American economy, are on the right track -- the track to a strong, sustained, noninflationary recovery.