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Donald Trump and his administration have been ignoring the warnings of economists for months that his tariff policy was going to be the fuel that inflation needed to come raging back.
In fact, the White House press office has been taking victory laps with each new data drop that showed inflation not rising.
Those victory dances ended on Tuesday morning as June’s numbers revealed that inflation is on the rise.
The Consumer Price Index rose 2.7 percent from a year ago, the swiftest pace since February, data released by the Bureau of Labor Statistics showed on Tuesday. That is slightly higher than expected and is up from an annual pace of 2.4 percent in May.
“Core” inflation, which strips out volatile food and energy prices and is seen as a reliable gauge for underlying price pressures, also shifted higher. Those prices were up 2.9 percent from the same time last year.
Over the course of the month, prices rose 0.3 percent, a notable pickup from a 0.1 percent increase in May. Core prices rose 0.2 percent.
Quietly, it seems that inflation is eating away at the economy, and Trump’s unilateral tariff decision is what is causing the problem.
Trump responded to his tariffs causing rising inflation by recommending a move that would crash the economy.
Trump said, “Very slight, essentially they were exactly as anticipated, very low inflation. So what you should do is lower the rate. The fed should lower the rate immediately.”
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Trump’s demand would make inflation worse. It is the wrong thing to do to curb inflation in lower prices. Since Trump has no interest in lowering prices, and his only goal is self-enrichment, he wants lower interest rates because they would be good for him.
Donald Trump elected with a mandate to lower inflation. Instead, he is delusionally trying to raise inflation while claiming victory.
What do you think about Trump and inflation? Share your thoughts in the comments below.
