US inflation tripled last month on record spike in gas prices

The Trump administration has acknowledged that rising oil and gas prices because of the war with Iran would send inflation higher. But it has repeatedly said a weakened Iran will be worth the cost.

On Friday, the White House opted for a different message: Other prices are falling.

“Although gas and energy prices are seeing volatility, prices of eggs, beef, prescription drugs, dairy, and other household essentials are falling or remain stable thanks to President Trump’s policies,” said White House spokesperson Kush Desai in a post on X.

Desai is right: Egg prices have fallen 44.7% over the past year as the industry recovered from the avian flu epidemic that had sent prices of a dozen eggs into the double digits. Meat edged 0.6% lower last month but prices remain high – and have risen 6.8% over the past year.

Overall, grocery prices fell 0.2% last month but remain 1.9% higher over the course of the year.

Desai also noted that US oil production remains robust and tax cuts will help pad consumers’ bank accounts.

“As the Administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid trajectory thanks to the Administration’s robust supply-side agenda of tax cuts, deregulation, and energy abundance.”

But the average increased tax refund is $351 this year, compared to last year. The annual increase in gas prices will cost households $190 a month in added costs, according to Andy Lipow, president of Lipow Oil Associates.