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by Brett Wilkins,
“Trump was handed a stable economy,” said one economist. “I expected them to screw up either the labor market, prices, or growth. I didn’t expect them to fumble all three.”
Belying U.S. President Donald Trump’s promise to “end inflation”—and his subsequent claim that he’s “solved” it—new federal economic data released Tuesday showed increased inflation in July resulted from businesses in some sectors are passing the costs of Trump’s tariffs on to consumers.
The consumer price index (CPI) figures, released by the U.S. Bureau of Labor Statistics (BLS), measure the cost of staple goods across the economy and offer a detailed look at inflationary impacts in a variety of areas. The overall CPI rose 2.7% in July from year-ago levels, a similar increase from June. So-called “core” inflation, which excludes volatile energy and food, rose 3.1% in July, the highest level in five months.
While White House Council of Economic Advisers Stephen Miran claimed that July’s CPI shows that there is “no evidence whatsoever” that Trump’s trade war has spurred price increases, economic experts have repeatedly predicted the cost of tariffs would ultimately be passed to consumers.
Natalie Baker, director of economic analysis at the Center for American Progress, a public policy research and advocacy group, said in a statement that “the consistent upward trend in inflation is the latest sign that President Trump’s reckless trade war and the resulting economic uncertainty are wreaking havoc on family budgets and the American economy.”
“Combined with the lackluster jobs report and recent [gross domestic product] numbers, this is a clear warning sign that the president’s policies are raising prices and squeezing consumers,” Baker adeed. “It’s a chilling reminder that the risk of stagflation is growing by the day.”
The Democratic National Committee weighed in on the numbers, with communications director Rosemary Boeglin saying that “Donald Trump is steering the economy off a cliff, as core inflation rises to over 3%.”
“Working families are already cutting back on basic necessities as Trump’s billionaire-first agenda makes life more expensive,” Boeglin continued. “While his budget explodes the deficit and enables the largest wealth transfer in history from the working and middle classes to the ultrawealthy, Trump’s erratic trade war continues to accelerate inflation and jack up prices.”
“While Trump profits off the presidency, hardworking Americans are struggling to get by with no end in sight,” she added.
House Budget Committee Ranking Member Brendan Boyle (D-Pa.) said in a statement: “Donald Trump was elected to bring down costs. Instead, he’s made the problem worse.”
“Trump’s Big Ugly Law gives away trillions to billionaires, paid for by cutting healthcare for millions of Americans,” Boyle added. “The American people simply can’t afford the policies of Donald Trump and the GOP.”
Mike Konczal—an economic adviser to former President Joe Biden who is now the senior director of policy and research at the progressive nonprofit Economic Security Project—called July’s CPI “overall worse than I expected, with the background of government disinvestment and deportations weakening potential growth.”
“Trump was handed a stable economy,” Konzcal added. “I expected them to screw up either the labor market, prices, or growth. I didn’t expect them to fumble all three.”
Source: https://www.commondreams.org
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