Inflation hits new high under Trump
U.S. inflation accelerated in April, a development with implications for households and policymakers. Bureau of Labor Statistics data show the headline inflation rate reached 3.8% year over year, with consumer prices up 0.6% on the month. Energy prices, linked in the report to the Iran war, accounted for about 40% of the monthly increase, while core inflation rose to 2.8% annually and 0.4% monthly. AAA reported the national average for regular gas at $4.50 on Tuesday, May 12, up from $4.13 a month earlier, as economists cited oil supply concerns. Before departing for China, President Donald Trump said the conflict’s economic impact does not affect his approach to Iran; Heather Long of Navy Federal Credit Union warned inflation is offsetting wage growth for households.
