Donald Trump is failing to meet his election promise to reduce cost of living pressures, with new figures showing Americans are spending more on groceries, shelter and utilities as inflation heats up.
The latest data from the Labor Department showed consumer prices rose 2.9 per cent in August compared to a year ago as companies continued to push the cost of tariffs onto consumers.
The figure marks the highest level since January when Trump returned to the White House.
And in a double whammy for the economy, new data also shows the number of Americans filing for unemployment benefits last week rose 263,000, the worst level in four years, in a sign that the labor market is softening.
“The middle class squeeze on tariffs is here,” Heather Long, chief economist for Navy Federal Credit Union, wrote on X.
“It’s troubling that so many basic necessities are rising in price again: food, gas, clothing and shelter all had big cost jumps in August. And this is only the beginning.”
The latest data comes days before the Federal Reserve’s much-anticipated September meeting next week.
Core inflation, which takes out food and energy and is viewed as a steadier gauge of underlying pressures, rose 3.1 percent from a year earlier.
But despite the uptick, Wall Street remains optimistic that the central bank will likely cut interest rates when it meets next week, amid months of ongoing pressure by the Trump administration.
This story is developing and will be updated…
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