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WASHINGTON (NEXSTAR) – President Joe Biden says the economy is one of the major factors driving his decision to run for re-election. 

The latest numbers from the Labor Department show inflation is cooling and the president argues the U.S. is on a good path but Republicans aren’t buying it. 

“I’m in this to complete the job I started,” Biden said. “In the future, if I’m reelected, that things are going to get much better. Our economy is growing.” 

There are mixed reviews on how the president is handling the economy. Republicans like Senator Josh Hawley say prices are still way too high. 

“The overall numbers are terrible,” Hawley said. “Groceries. Gas. Nobody can afford to buy a car. Nobody can afford to buy a house. I mean, it’s just unbelievable.”

President Biden is touting the numbers from the latest consumer price report, which shows consumer prices dropped 0.1% from May to June. 

The Labor Department figures also show overall inflation is lower. Compared to one year ago prices were up 3% in June, which is down from the 3.3% annual rate in May

“We had a great economic report showing inflation is down,” Biden said. 

Economists agree that the new report shows encouraging signs. 

Greg McBride is the Chief Financial Analyst with Bankrate.

“The headline inflation rate was actually down month over month and that’s because we saw a very sharp drop in energy prices, specifically gasoline but also electricity,” McBride said. 

He says another highlight is the housing costs, which are finally moderating. McBride says that’s an important contributor to keeping core inflation, which excludes gas and food costs, fairly level, though budgets may still be stretched thin. 

“When inflation is coming down that doesn’t mean prices are coming down. It just means they’re not going up as fast,” McBride said. 

So, when will people start feeling better about the economy? McBride says there are reasons to think that could happen soon.  Wages are consistently growing, so he projects that will give people more buying power in the long term.

“As wage growth continues to go up but prices don’t go up as fast, that’s where households over time will get a little bit more breathing room in that household budget,” McBride said. 

The lower inflation may also mean the Federal Reserve will cut interest rates as early as September.