As the United States navigates a fragile ceasefire in its conflict with Iran, the price of oil has remained volatile and high. Brent crude, the international benchmark, was trading at $104.21 per barrel at market close on Monday, nearly 57% higher than its pre-conflict price. Inflation has risen as a result and is in a territory it hasn’t been since 2023, according to an analysis by NBC News.
On Tuesday morning, the Bureau of Labor Statistics released its monthly Consumer Price Index update for April. It reported that inflation in April was 3.8%.
A vast majority of Americans don’t trust either party to fix the economy.
The bureau stated in a press release that the rise in energy costs is responsible “for over 40% of the monthly all-items increase.”
In its report on the April inflation numbers, NBC News noted that in Friday’s April jobs report, average hourly earnings rose by 3.6% over the past year. This marks the first time since 2023, during the Biden administration, that wages have not kept pace with inflation.
Despite the runaway inflation of the Biden years, Democrat congressional leaders pounced on the inflation news. House Budget Committee Ranking Member Brendan Boyle (D-Penn.) said in a statement, “From his tariff taxes to his disastrous war in Iran, President Trump is making life even harder for American families. Today’s inflation data confirms what everyone can see: Costs are out of control.”
Republicans, on the other hand, are focused on the growth in jobs and the economy in general and reminding voters of the Biden-era inflation. House Ways and Means Committee Chairman Jason Smith (R-Mo.) said, “While inflation has come down substantially since the 21% spike in prices seen when Democrats controlled all of Washington, American families are still looking for additional relief, and that is why Republicans acted to deliver the largest tax cuts in American history.”
Smith further highlighted the growth in GDP and hope that the new chairman of the Federal Reserve would be “a leader over monetary policy who understands that high interest rates have held back the true economic potential of our country.”
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A consensus seems to be brewing among investment experts that unlike the broad-based inflation of the early part of the Biden presidency, this inflation could truly be transitory if energy prices come down.
“The report still showed only limited evidence of fully broad-based second-round inflation effects,” said Arielle Ingrassia, an investment specialist at Evelyn Partners, according to IFA magazine.
“That leaves the overall picture closer to an energy and transport shock than a full inflation spiral — at least for now.”
The inflation release Tuesday coincides with findings from a new CNN/SSRS poll that shows “roughly two-thirds of Americans say that Trump’s policies have worsened economic conditions in the country. And Trump’s approval rating stands at 30% on the economy, a career low,” according to CNN.
But Democrats do not fare well in this new polling either. A vast majority of Americans don’t trust either party to fix the economy.
As the nation heads into a midterm election being shaped by redistricting battles, Americans’ perceived economic outlook will continue to be a determining factor for the control of both the House and Senate in November.
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Biden administration, Bureau of labor statistics, Consumer price index, Inflation, Interest rates, Iran, Jobs, President trump, Wages, Politics