WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the release of the August reading of the Personal Consumption Expenditures (PCE) price index, showing core inflation holding at 3 percent, and the third estimate of Q2 2026 gross domestic product (GDP), showing GDP grew at 2.2 percent on an annualized basis:

“At its peak under the Democrats’ failed leadership in the Biden Administration, inflation was nearly double what it is today. A reckless $10 trillion Democrat spending spree drove up the cost of groceries, gas, and housing, leaving working families unable to keep up as their paychecks fell further behind. Prices today remain too high, and families are still feeling the pain — but core inflation today is less than half of what it was at its peak in 2022, and more relief may be just around the corner.

“Oil exports in the Middle East are estimated to be back to 94%, as our military has helped stabilize the Strait of Hormuz, which is starting to bring down gas prices. The Trump administration announced new agreements with China, which will expand opportunities for our farmers while bringing prices down on a range of products that have no American competitors. And Americans continue to enjoy the relief provided from the largest tax cut for working families in history. Thanks to No Tax on Tips and No Tax on Overtime, servers, nurses, and factory workers are keeping more of every paycheck. Employers can now write off new equipment, factories, and research right away, and small businesses have the room they need to invest in their communities.

“While Republicans ensure working families keep more of what they earn, Democrats proudly proclaim that they will raise taxes. They want to take us back to the same failed policies that drove prices through the roof under Biden — using tax dollars to subsidize the wealthy, well-connected, and big corporations, and pushing prices even higher with their war on American energy. Republicans are going to keep fighting alongside President Trump to lower costs, unleash American energy, bring jobs home, and build an economy where working families can get ahead.”