Trump Calls Affordability a Fake Word as U.S. Inflation Hits 4.2%
Updated
Updated · Forbes · Jun 17
Trump Calls Affordability a Fake Word as U.S. Inflation Hits 4.2%
3 articles · Updated · Forbes · Jun 17
Summary
At the G7 summit, Trump said the U.S. has “the strongest economy we've ever had” and dismissed affordability as a Democratic invention, despite rising public concern over prices.
A 4.2% annual CPI reading in May marked the fastest inflation since April 2023 and a third straight month of accelerating price growth, with energy accounting for more than 60% of the monthly increase.
The remarks put Trump at odds with both his own economic data and Vice President JD Vance, who said Tuesday that the affordability problem is “very real” and that the administration is still working on it.
The Fed, meeting for the first time under Chair Kevin Warsh, held rates steady but signaled at least one hike later this year as inflation pressure persists.
Gas averaged $4.02 a gallon on Wednesday versus $3.16 a year earlier, and economists estimate the Iran war will add about 0.6 percentage points to headline inflation in 2026.