It hadn’t happened in almost three years. The United States recorded a strong acceleration of inflation on Tuesday, May 12. The Consumer Price Index (CPI) rose by 3.8% year-on-year in April, its highest level since May 2023, after 3.3% in March. Price increases affect many sectors of the American economy, from fuels to rents, including food and airplane tickets.
Energy remains the main driver of this inflationary surge. Fuel prices jumped by 28.4% year-on-year, while grocery shopping increased by 2.9% year-on-year and 0.7% month-on-month. Beef is among the most affected products, with increases of 16.1% for steak and 14.5% for ground beef. According to Samuel Tombs, an analyst at Pantheon Macroeconomics, this increase “appears to be linked to energy”, with producers passing on their costs to consumers.
“Short-term” for Donald Trump
Asked by the press, Donald Trump downplayed the extent of the situation, stating that this high inflation was “short-term” and would slow down after the end of the war with Iran. The U.S. president also dismissed the idea that household economic difficulties could influence his diplomatic position. “Not at all,” he replied when a journalist asked him if rising prices could hinder negotiations with Tehran. “The only thing that matters when I talk about Iran is that they cannot have nuclear weapons. I do not think about the financial situation of Americans.”
These statements quickly provoked reactions from the Democratic opposition, just a few months before the American legislative elections. A CNN survey released this week indicates that 70% of those surveyed approve of the president’s economic policy, despite being elected in part on the promise of reducing the cost of living.
Democratic opposition cries scandal
Democratic Senator Elizabeth Warren directly accuses Donald Trump of fueling inflation through the tariffs imposed on imports and the U.S. military engagement in Israel against Iran since February 28. “Donald Trump had promised to lower prices ‘from day one.’ Instead, he continues to raise them,” she said.
In gas stations, the effects of the conflict in the Middle East continue to weigh on prices. According to the American Automobile Association (AAA), a gallon of regular gasoline now costs an average of $4.50, up from about $3 before the start of the war. Economist Diane Swonk of KPMG emphasizes that “the rise in pump prices is adding to other energy costs predating the war in Iran,” including the rise in electricity prices linked to high demand from data centers.
