The inflation surged once again in the United States on Tuesday to reach a three-year high, reflecting the spike in pump prices and a significant increase in food costs. At 3.8% year-on-year in April, the Consumer Price Index (CPI) is at its highest pace since May 2023. In comparison, it grew by 3.3% in March and 2.4% in February. Gasoline weighs heavily (+28.4% year-on-year), but price increases are widespread in the rest of the economy, from rents to airplane tickets.
After a pause in March, food prices rebounded in April (+0.7% month-on-month). This increase “seems linked to energy,” with producers passing on the extra costs they face, according to Samuel Tombs of Pantheon Macroeconomics. In the land of burgers, beef stands out among products that are alarming consumers as the midterm elections approach in November. In April, one had to pay 16.1% more than a year earlier for a beef steak, and 14.5% more for ground meat. Signs of relief are rare, for example at dealerships (-2.7% year-on-year for used vehicles).
The opposition blames Donald Trump
“For the first time in three years, inflation is outpacing wage increases. This is a blow to middle and working-class households,” noted Heather Long, an economist at Navy Federal Credit Union. Senator Elizabeth Warren, a Democrat, criticizes President Donald Trump, who had promised to lower prices “from day one” of his term in January 2025. Instead, he continues to drive them up. She sees the current inflation as a direct result of the president’s personal decisions, hitting imports with multiple tariffs and waging war against Iran on the side of Israel.
In gas stations, the impact of the Middle East war continued to be felt in May. A gallon of regular gasoline currently averages $4.50, compared to around $3 before the war, according to the American Automobile Association (AAA). The war, which began on February 28, appears to be at a standstill, and oil prices remain above one hundred dollars a barrel. The government of Donald Trump assures that the economic disruptions are temporary for Americans.
