President Donald Trump recently acknowledged that inflation is rising again, contradicting his campaign promise to lower prices immediately after taking office. Instead, he blamed the Biden administration’s spending for the issue.
In a recent interview with Fox News’ Sean Hannity, Trump stated that “inflation is back” and attributed it to the Biden administration’s excessive spending. He claimed that the administration spent money like nobody has ever done before, causing prices to surge.
However, economists are divided on the extent of federal spending’s impact on inflation. While some argue that it contributed to the spike in 2022, others believe that other factors such as supply chain issues and global demand are more significant.
Trump pointed to a “Green New Scam” as a major cause of inflation, but no such bill was ever passed. He claimed that $9 trillion was wasted on this initiative, which is not supported by any evidence.
The Bureau of Labor Statistics reported a 3% year-over-year increase in consumer prices for the first time since June 2022. The main drivers of this rise are surging fuel and egg prices, as well as a combination of sanctions on Russia and Iran, which have raised fuel prices.
Economists caution that Trump’s tariffs will also contribute to higher inflation, ultimately increasing costs for American consumers. This could negate any potential savings from his plans to cut spending and taxes.
In conclusion, while it is true that the Biden administration’s spending contributed to rising inflation in the past, it is not the primary cause of the current surge. The issue is more complex, and Trump’s economic policies may even exacerbate the problem.
Source: https://edition.cnn.com/2025/02/19/economy/trump-inflation-is-back/index.html