Daniel Wolfram
So much for the “golden age” of America and the booming economy that Trump keeps promising.
Grocery bills continue to rise for a third straight month for American consumers.
Prices jumped across nearly every aisle, led by a 0.9% spike in beef alongside pricier eggs, vegetables, and milk. Even a regular snack cost 1% more.
And while the overall consumer index fell by 0.2%, prices kept going up due to rising inflation and other underlying expenses.
The goods in the shopping aisles keep getting more expensive
According to the Labor Department, consumer prices rose 0.4% in October. Economists polled by Reuters had expected prices to fall, but the month brought a third straight round of increases in prices. Higher housing costs drove over 30% of that monthly jump.
Rising shipping expenses may already be hitting local grocery shelves.
“This may finally be the beginning of a pass-through of higher transportation costs to grocery prices,” observed Stephen Stanley, an economist with Santander US Capital Markets, in comments to Reuters. He cautioned that identical pressures could quickly spread to many other retail goods.
Trump’s tariffs keep hurting Americans
Geopolitical turbulence and new trade barriers keep stoking the fire. Conflict involving the US, Israel, and Iran pushed up crude oil, while the Trump administration’s tariffs lifted price tags on imported toys and home furnishings.
Those financial problems that everyday Americans face recently punished Republicans at the ballot box during the midterm elections.
Central bankers now also feel the effects of Trump’s policies. Fed Governor Christopher Waller signaled that policymakers should boost borrowing costs soon, warning that “a stronger policy move may be needed.”
Financial markets tracked by CME Group now place an 89% probability on an interest rate hike next month. Yet some analysts argue that policymakers are reacting far too late. “The Fed seems to be falling behind the curve on inflation, and the October hold is looking like a policy mistake,” said Stephen Juneau, an economist at Bank of America Securities.
“Inflation isn’t dead; it is very much alive and the cost-of-living crisis rages on,” said Christopher Rupkey, chief economist at FWDBONDS.
