WASHINGTON — President Donald Trump's administration is confronting a deepening inflation problem, with recent data showing price increases across the U.S. economy. The Consumer Price Index rose 3.8 percent year-over-year in April, a sharp increase from February's 2.4 percent annual rate, which preceded U.S. and Israeli military strikes on Iran.
The Producer Price Index, which tracks wholesale costs for businesses, hit a 6 percent annual rate in April, up from 4 percent in March. On a monthly basis, the wholesale index increased 1.4 percent, double economists' expectations and the second-biggest monthly jump on record.
The figures present a direct political problem for Trump, who campaigned on resolving the affordability crisis and lowering prices. His administration now faces voter frustration over persistent high costs — the same frustration that dogged former President Joe Biden ahead of the 2024 election.
Michael Negron, a special assistant to the president for economic policy in the Biden White House, said the Trump team is pursuing policies that worsen the problem. Negron cited tariffs and the ongoing war with Iran as factors pushing energy prices higher and driving inflation up.
The conflict with Iran has taken 20 percent of the world's oil supply offline, contributing to the April price shock. Trump said the inflation is "just short-term" — an echo of Biden's 2021 claim that price increases were "expected to be temporary."
Vice President JD Vance, asked on Fox News about the Republican Party's approach to the cost of living, said the issue shows "the past 40 years of bipartisan economic policy have failed." Peter Loge, director of George Washington University's School of Media and Public Affairs, said voters typically blame the current leader regardless of cause.
Former Biden administration staffers see the parallels clearly. Brendan Duke, a senior policy adviser at the White House National Economic Council under Biden, said the situations track closely. Andrew Bates, a former White House spokesman under Biden, said Trump "owns his situation in a unique way," given his explicit promise to lower prices upon taking office.
Beyond volatile energy prices, core inflation figures point to a more persistent problem. Core services — excluding energy and housing — rose 3.3 percent year over year and 0.5 percent from March to April. That category covers rent, healthcare, car insurance and restaurant meals.
Heather Long, chief economist at Navy Federal Credit Union, said it is difficult to present a positive economic narrative if services inflation keeps rising at 0.5 percent a month. The sustained increase in those core components suggests inflation is not tied to a single, easily reversible factor.
