United States: Inflation at highest level in nearly three years, Trump plays down

The United States experienced a significant acceleration of inflation on Tuesday, with the Consumer Price Index (CPI) increasing by 3.8% year-on-year in April. This marks the highest level since May 2023, following a 3.3% increase in March. Price hikes are affecting various sectors of the American economy, from fuels to rents, food, and airplane tickets.

Energy is a key driver of this inflationary surge, as fuel prices surged by 28.4% year-on-year, while food prices increased by 2.9% year-on-year and 0.7% month-on-month. Beef prices have seen significant increases, with steak prices up by 16.1% and ground beef by 14.5%. Analysts believe these price hikes are linked to energy costs, with producers passing on their additional expenses to consumers.

President Donald Trump downplayed the situation, calling it “short-term” and suggesting that inflation would slow down after the end of the conflict with Iran. He dismissed the idea that household economic difficulties could influence his diplomatic stance, emphasizing the importance of preventing Iran from acquiring nuclear weapons.

These statements quickly drew criticism from Democratic opposition, just months before the US legislative elections. A recent CNN poll showed that 70% of respondents approve of the president’s economic policies, despite his campaign promise to reduce the cost of living.

Democratic Senator Elizabeth Warren directly accused Trump of fueling inflation through tariffs on imports and US military engagement with Israel against Iran. She criticized Trump for failing to fulfill his promise of lowering prices and instead causing them to rise.

In gas stations, the effects of the Middle East conflict continue to impact prices. According to the American Automobile Association (AAA), the average price of regular gasoline now stands at $4.50 per gallon, compared to around $3 before the start of the war. Economist Diane Swonk from KPMG highlighted that the price spike at the pump is compounded by other energy costs predating the Iran war, such as increased electricity prices linked to high demand from data centers.