There seems to be NO exit door for American consumers against rising prices everywhere on Trump’s watch..
Inflation shot up to its highest level in two years in March, and consumer sentiment is at a record low. As the effects of President Donald Trump’s war with Iran ripple across the economy, the combination of surging prices and grim attitudes is a warning sign to Republicans seeking to maintain control of Congress in the midterm elections.
Oil and gas prices exploded in March as global energy markets absorbed a once-in-a-generation supply shock from the war with Iran. The halting of tanker traffic through the Strait of Hormuz created global shortages of crude oil and liquefied natural gas, which led to spikes in the price of gasoline, diesel fuel and other petroleum products.
Inflation climbed at an annual rate of 3.3 percent in March, with gasoline jumping by 21.2 percent, the Labor Department reported Friday, and the increase in energy costs accounted for nearly three-quarters of the monthly increase in the consumer price index. Meanwhile, consumers surveyed by the University of Michigan said they blamed the war for the worsening economy, and the sentiment index fell below its nadir from when post-pandemic inflation was at its worst.
“For consumers, this is very real,” said Mike Reid, the head of U.S. economics at RBC. While the inflation surge was largely due to energy prices, which can be volatile, the outlook now depends on how long the “conflict in the Middle East lasts, and what is the risk that higher energy prices start to spill over into the broader economy,” he added.
High inflation plagued former President Joe Biden’s presidency, and Trump was elected to a second term on the promise of containing price growth and unleashing an economic “golden age” that would benefit working Americans….
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