Lates News

Institutional analysis indicates that U.S. consumer prices likely rose sharply in September, driven by higher gasoline and food costs, adding a series of headwinds for Trump and his Republican Party ahead of the November 3 midterm elections. Previous surveys showed consumer confidence had deteriorated, and Trump's approval rating had fallen due to rising living costs. A Reuters/Ipsos poll showed that about 78% of Americans blamed Trump's policies for higher prices, including tariffs and the U.S.-Israel war against Iran, while price increases have outpaced wage growth. However, the September CPI report is expected to show that core prices, excluding food and energy, rose moderately, reducing the urgency for the Federal Reserve to raise interest rates again this month. Economists said the slowdown in core CPI offers little comfort to consumers, especially those at the bottom of the "K-shaped economy." "People care about food and energy, that's what they feel every day," said Sung Won Sohn, professor of finance and economics at Loyola Marymount University, noting that food and energy are expenses ordinary people feel directly in their daily lives. A large number of voters are in the lower half of the K-shaped economy and are bearing the brunt of rising energy and food prices, which is likely to determine the outcome of this election.