This article was originally published on Truthout.
On Monday, the Bureau of Labor Statistics (BLS) published its April Consumer Price Index (CPI) report, showcasing that inflation is the highest it’s been in the past three years.
According to the CPI, prices on all consumer goods shot up by 3.8 percent over the past year. The report indicates that Americans’ wages are no longer keeping up with the pace of inflation — in other words, the rise in costs for goods has overtaken the 3.6 percent average wage gain workers received over the past year.
Multiple factors relating to Trump administration policy or consequences from President Donald Trump’s actions likely played a role in higher price increases, including his unpredictable adjustment of tariffs as well as his decision to launch a war on Iran, resulting in the closure and disruption of exports (including oil) through the Strait of Hormuz.
Food costs also increased, the CPI showed, with prices increasing by 3.2 percent over the past year. Fruits and vegetables prices went up by 6.1 percent, fish and seafood by 6.2 percent, salt and seasonings were up by 7.1 percent, and beef saw a 14.8 percent increase in costs, according to the report.
In the category of “food away from home,” which includes costs for purchasing food at restaurants, in school meals, at vending machines, and other places, prices went up by 3.6 percent.
Shelter costs, which had been easing in recent months, increased by 0.6 percent in April, with a 3.3 percent increase for the past year overall.
Heather Long, chief economist at Navy Federal Credit Union, said the report made clear what most Americans were already feeling when it comes to being able to afford basic goods.
“Inflation is the key drag on the U.S. economy now,” Long said. “This is hurting Americans. There is a real financial squeeze underway.”
“This is a setback for middle-class and lower-income households,” she added.
A separate report from the Energy Information Administration (EIA) that was also published on Tuesday had more bad news for American consumers, indicating that gas prices — which currently sit just over $4.50 per gallon for regular grade gasoline — will not be going down anytime soon, due in large part to the war on Iran.
According to the assessment, the agency predicts regular grade gasoline will remain around $3.88 per gallon, on average, through the rest of 2026. For 2027, the agency believes gas will remain around $3.62 per gallon, on average, throughout the year. Both prices are well above the $2.937 per gallon that was seen in the U.S., on average, before the start of the war.
The EIA report assumes that the Strait of Hormuz will “remain effectively closed until late May, with shipping traffic beginning to pick up in June.” If that assumption is incorrect, and shipping doesn’t pick up by then, average gas prices will likely be higher than what is currently predicted.
Trump has largely ignored Americans’ concerns on affordability, recently describing the term as a “line of bullshit” Democrats use against him. Despite usually bragging right away about positive reports on his Truth Social account, as of press time, Trump has yet to comment online about the CPI’s or the EIA’s recent findings.
Instead, early on Tuesday morning — before either report was published — Trump shared a meme featuring his image and a graph of the S&P 500 stock trading index, with a text on the image reading, “TRUMP’S STOCK MARKET ALL TIME HIGH!”
Previously, Trump has described gas prices above $4 per gallon as “not very high,” adding that he viewed them as a necessary sacrifice for the war on Iran, to keep that country from obtaining a nuclear weapon (which, experts and military intelligence have suggested, Iran wasn’t close to getting anytime soon). But in a rare acknowledgement of Americans’ financial struggles earlier this week, Trump said he was considering suspending the federal gas tax.
Such a move might be a “high cost/low reward” situation, reducing funding for federal transportation projects while only relieving vehicle owners’ spending at gas pumps by about 18 cents per gallon, still leaving prices at much higher levels than before the war began.
A newly published CNN poll shows Americans are largely upset with Trump when it comes to his handling of the economy, with only 30 percent approving of his economic policy and 70 percent disapproving. When it comes to inflation, only 26 percent give Trump positive marks, with 74 percent saying they disapprove of his job performance on the issue.
Inflation Report Poll Results (CNN)
(Added by Resist Hate Editor)
Hours after the inflation report was released, Trump was asked by reporters to what extent the financial situation of Americans motivated him to make a deal with Iran.
“Not even a little bit,” Trump responded.
“I don’t think about Americans’ financial situation,” he added.
This article from Truthout.org was republished here under a Creative Commons license.
