Inflation picks up speed after Trump promised to ‘rapidly’ bring down prices
Inflation ticked higher in the US in January as
returned to office with a pledge to rapidly reduce prices.The consumer price index rose by 3% last month – up slightly from February’s annualized 2.9% reading.
The closely watched index rose 0.5% on a month-to-month basis, stronger than the 0.3% forecast by economists.
Inflation soared across much of the world three years ago, as the pandemic continued to distort the global economy and supply chains. It peaked at 9.1% in the US, its highest level in a generation.
While price growth has since fallen dramatically, consumer prices have remained high –
challenging perceptions of an economy
which, on paper, has proved remarkably resilient.
Related:
US egg prices expected to climb further as farmers strained by bird flu outbreak
As millions of Americans struggled with the cost of living last year, Trump promised to take action on the campaign trial. “Prices will come down,” he
during one speech. “You just watch – they’ll come down, and they’ll come down fast.”Since his election victory last November, however, Trump has appeared to soften his pledge. “I’d like to bring them down,” he
of prices in December. “It’s hard to bring things down once they’re up. You know, it’s very hard.”Asked by Fox News when families will be able to “feel prices going down” this weekend, the president changed the subject and claimed other countries were taking advantage of the US.