New federal data indicates rising inflation and stagnant wage growth in the US, with analysts attributing the economic strain to President Trump's policies regarding Iran and the resulting disruption in global energy markets. The report highlights increased consumer spending on energy and a slower-than-expected GDP rebound.
Federal data released Thursday provided further confirmation that US President Donald Trump's war of choice in Iran is harming the nation's economy and working class, with prices continuing to rise as paychecks fail to keep pace.
'The data is clear: Trump’s illegal war in Iran is a disaster for Americans’ budgets at home,' Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, said in a statement after the US Bureau of Economic Analysis announced that the Personal Consumption Expenditures price index rose to 3.5% year-over-year in March—the highest rate since May 2023. The BEA estimates that US consumer spending increased by $195.4 billion in March—with 'gasoline and other energy goods' making up $81.3 billion of that total.
Trump's war on Iran has hurled the global energy market into chaos, pushing US gas prices above $4 per gallon on average. BEA also released data showing that US gross domestic product rose at at an annual rate of 2% during the first three months of 2026—a smaller rebound than expected after the final quarter of 2025, when GDP rose by just 0.5%.
Additionally, the Bureau of Labor Statistics on Thursday released its Employment Cost Index for the first quarter of 2026. The index, which measures wages and benefits paid to workers, increased 0.9%—well behind PCE inflation.
'Paychecks are lagging behind prices, and economic growth remains sluggish thanks to the president’s gross mismanagement,' said Jacquez. 'Working families looking for relief certainly won’t find it under this administration. It’s no wonder Trump’s economic disapproval ratings are at an all-time high.
'Rep. Brendan Boyle , the top Democrat on the House Budget Committee, said in a statement Thursday that 'Trump promised to lower costs on day one, but today’s report is more proof that was just a lie.
''His so-called ‘Big Beautiful Bill,’ his reckless tariffs, and his war of choice in Iran are driving up costs on everything from groceries to gas to healthcare,' said Boyle. 'Republicans control the White House, the House, and the Senate, and they only have themselves to blame for this cost-of-living crisis. The American people deserve better than their chaos, corruption, and total economic incompetence. ”
Inflation US Economy Iran Policy Gas Prices GDP
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. jobless aid filings fall to 189,000 last week despite multiple economic headwinds, war in IranThe number of Americans filing for unemployment benefits tumbled below 200,000 last week despite a number of economic headwinds including the war in Iran. U.S. jobless aid applications for the week ending April 25 fell by 26,000 by to 189,000, down from the previous week’s 215,000, the Labor Department reported Thursday.
Read more »
U.S. jobless aid filings fall to 189,000 last week despite multiple economic headwinds, war in IranThe number of Americans filing for unemployment benefits tumbled below 200,000 last week despite a number of economic headwinds including the war in Iran.
Read more »
U.S. jobless aid filings fall to 189,000 despite economic headwinds and war in IranThe number of Americans filing for unemployment benefits tumbled below 200,000 last week despite a number of economic headwinds including the war in Iran.
Read more »
U.S. jobless aid filings fall to 189,000 last week despite multiple economic headwinds, war in IranU.S. jobless aid applications for the week ending April 25 fell by 26,000 by to 189,000.
Read more »
Illinois sees largest spike in gas prices since Iran war began, data showsIllinois this week saw its biggest spike in gas prices since the war with Iran started, according to data.
Read more »
Trump’s 'Economic Fury' squeezes Iran — but can Tehran outlast the pressure?Fox News Channel offers its audiences in-depth news reporting, along with opinion and analysis encompassing the principles of free people, free markets and diversity of thought, as an alternative to the left-of-center offerings of the news marketplace.
Read more »