Donald Trump’s reckless trade war and unpopular war of choice with Iran continue to drive up prices. New economic data released today shows producer prices increased 1.1% in May and 6.5% annually, the largest 12-month increase in nearly four years. Producer price data from the last two months marks the largest two-month increase in over four years.
Consumer Price Index data for May released yesterday showed annual inflation surged to 4.2%, the highest in three years, as Trump’s war with Iran causes global oil prices to skyrocket. Trump’s inflation is outpacing wage growth, which is at a five-year low. When asked about rising inflation yesterday, Trump declared, “I love it. The numbers were great. You know what I really love? I love the inflation.”
Trump continues to strain the manufacturing sector. Over 70% of manufacturers recently said they have faced rising energy input costs due to Trump’s war, and the share of manufacturers who said raw material costs were their top business challenge jumped nearly 26 points in the second quarter of this year.
In response, DNC Rapid Response Director Kendall Witmer released the following statement:
“Donald Trump’s economy is in a tailspin, and families, farmers, and small business owners are the ones paying the price. Trump’s unpopular war of choice with Iran has pushed prices even higher, forcing working families to make impossible decisions about whether to fill their tanks or put food on the table or pay their rent. While Americans see their hard-earned paychecks evaporate and struggle to make ends meet, Trump is turning his head and doubling down on his disastrous agenda that puts his interests first and Americans last.”
