Overview
- New data and polls in late May show inflation pressure returning with the Consumer Price Index reaccelerating in April and consumer confidence plunging to multi‑decade lows.
- Gasoline has climbed by more than $1 a gallon since the Iran war began and now averages about $4.50 for regular and over $5.50 for diesel, putting direct strain on household budgets.
- Surveys report a rising share of Americans cutting spending on groceries, entertainment and other items, and a majority say Trump’s policies have increased their cost of living.
- Some House Republicans are publicly criticizing administration priorities and warning higher prices could cost the party seats, while analysts say fuel prices are unlikely to fall materially until the Strait of Hormuz reopens or the Iran conflict ends.
- The rebound in prices revives a voter issue that helped decide prior elections, undercutting 2024 GOP promises to defeat inflation and creating clear political danger ahead of November.