Trump claims that inflation is a thing of the past

US President Donald Trump has declared that inflation in the US has been defeated, even though the latest data shows the opposite. In August, it stood at 2.9 percent, which represents an increase from 2.6 percent a year ago and is still above the Fed's target.

Despite a slight decline in food and mortgage prices, Americans perceive the price burden as a significant problem. The Fed therefore lowered interest rates in September, but points out that although inflation has fallen from its post-pandemic highs, the risks remain.

The impact of the tariffs imposed by Trump, which have mainly driven up the prices of everyday goods – for example, the price of coffee rose by almost 21 percent year-on-year – is also a cause for concern.

Although the tariffs have not yet led to a sharp rise in inflation, some economists warn that their long-term effects could be more serious. The inflation report for September has been delayed due to the suspension of federal government operations, making it difficult to assess current developments.

(tasr, mja)