Inflation at highest level in nearly three years in the United States

Inflation Surges in the United States: Reaches Highest Level in Three Years

Inflation has once again derailed in the United States: it hasn’t been this high in almost three years, according to data published on Tuesday, reflecting the surge in gas prices and a rise in food costs.

In April, the Consumer Price Index (CPI) increased by 3.8% year-over-year. Such a pace has not been observed since May 2023. Inflation was at 3.3% a month earlier, after 2.4% in February.

This development puts pressure on the government of Donald Trump as the midterm elections approach in November. During the 2024 election campaign, Trump promised to lower prices and create a new “golden age” for Americans. He assured the press on Tuesday that this high inflation was only “short-term” and would decrease significantly once the war with Iran is over.

The U.S. executive has been claiming for weeks that disruptions related to the conflict in the Middle East are temporary. They describe them as the price to pay for preventing Iran from ever obtaining nuclear weapons.

In the data released on Tuesday, gasoline weighs heavily with a 28.4% increase in fuel prices over a year. But price hikes are also widespread across the economy, from rents to airline tickets.

After a pause in March, food prices rebounded in April (+2.9% year-over-year, +0.7% month-over-month). This increase “seems to be linked to energy”, with producers passing on the costs they incur, said Samuel Tombs, an analyst at Pantheon Macroeconomics. Beef is among the products causing concern for consumers. In April, one had to spend 16.1% more than a year earlier for a beef steak. The increase was 14.5% for ground beef.

Signs of relief are scarce, for example, at dealerships (-2.7% year-over-year for used vehicles).

Opposition Blames Trump

“For the first time in three years, inflation is rising faster than 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, criticized President Trump for failing to fulfill his promise to lower prices “from day one” of his mandate in January 2025. Instead, she accuses him of constantly raising them.

In May, the impact of the Middle East war continued to be felt at gas stations. A gallon (almost 3.8 liters) of regular gasoline now costs an average of $4.50, compared to around $3 just before the conflict began, according to the American Automobile Association (AAA) data. At $5.64 per gallon, diesel, which powers trucks and tractors, is approaching the record set in June 2022 ($5.82), a few months after Russia’s invasion of Ukraine.