The U.S. Bureau of Labor Statistics released data on Tuesday showing that due to a sharp rise in energy costs triggered by the Middle East war, the U.S. Consumer Price Index (CPI) posted its fastest year-over-year increase since May 2023 in April, further elevating living costs for American households. In April, the U.S. CPI rose 3.8% year-over-year, significantly higher than the 2.4% increase seen in February before the conflict erupted and the 3.3% rise in March. This growth was primarily driven by energy prices, which surged 3.8% from the previous month and rose nearly 18% compared to the same period last year. However, the "core" inflation index, which excludes the more volatile food and energy components, also increased by 2.8% year-over-year in April—up from 2.6% in March. The Federal Reserve typically disregards fluctuations in energy costs, as such price swings usually revert before affecting deeper layers of inflation. Nevertheless, this data exceeding expectations weakens the rationale for rate cuts this year. Many analysts have now pushed back their predictions for rate cuts to 2027.
On Tuesday, just before departing the White House for Beijing, Trump was asked by reporters about the inflation data released that day. He stated that his "policies are running extremely well." He also called the journalist asking the question "very stupid"—a term he also used to describe those who would allow Iran to possess nuclear weapons. He added, "As soon as this war ends—and it won’t take long—you’ll see oil prices drop, and you’ll also witness the stock market, already at historic highs, surge even further."
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Original article: toutiao.com/article/1865044542879755/
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