Trump faces fresh economic nightmare as food and gas prices soar before midterms

Rising grocery and fuel bills are expected to have pushed U. S. consumer prices up again in September, another political burden for President Donald Trump and congressional Republicans less than a month before the November 3 midterm elections. Economists polled by Reuters forecast a 0. 6% monthly increase in the Consumer Price Index, compared with 0. 4% in August, and a yearly rate of 3. 6%, up from 3. 4%. Gasoline rose 7. 1% in September, per the Energy Information Administration, and food is projected to gain at least 0. 2%. A Reuters/Ipsos survey found roughly 78% of Americans blame Trump's policies, including tariffs and the war with Iran, for prices climbing faster than wages. Sung Won Sohn, a Loyola Marymount University economics professor, says voters in the lower part of a K-shaped economy feel food and energy costs most, according to The Independent.

Excluding food and energy, core inflation is forecast at just 0. 2% for the month, which could let the Federal Reserve hold rates at its October 27-28 meeting after last month's quarter-point hike to 3. 75%-4. 00%. Markets give another increase about a 22% chance. BMO Capital Markets economist Scott Anderson says a 0.

Summarized by PolitiKool from The Independent’s reporting. Read the full story at The Independent →