US President Donald Trump has admitted he does not focus on the financial hardship faced by Americans as a result of the war with Iran, despite inflation hitting a three-year high. Speaking on Tuesday, Trump insisted that the only thing that matters in negotiations with Tehran is preventing Iran from obtaining a nuclear weapon.
Official figures show US prices rose 3.8% in April, the fastest pace since 2023, driven by energy costs that have surged since the US and Israel attacked Iran in late February. Gasoline now averages over $4.50 a gallon, the highest in four years, while food prices are up nearly 4% and airline fares have risen by more than 20%.
Trump's top officials have offered conflicting forecasts on when relief might come. Energy Secretary Chris Wright initially predicted fuel prices could return to prewar levels by summer, but later said he could not make predictions. Economic adviser Kevin Hassett claimed relief would come before the midterm elections, while Secretary of State Marco Rubio suggested Americans should count themselves fortunate compared to other countries.
The economic strain is global, with inflation accelerating in Australia, Canada, and South Korea, and British households warned of a fresh cost-of-living crisis. A University of Michigan survey found consumer confidence has slid to levels last seen in 2022. Trump, however, insisted his economic policies were working 'incredibly' and predicted a 'golden age' once the war ends.
