Let’s go to Kathmandu. The war in the Middle East has once again intensified. The US-Iran war continues for the second day in a row.
At the same time, the price of international crude oil has also increased. The Iran war is becoming a big headache not only for other countries around the world, but also for the United States, and Americans are bearing the brunt of it.
The US has also been hit by oil and gas supply disruptions and a sharp rise in energy prices due to the Iran war. This has led to serious inflation.
Inflation data for the month of May has been released for the US and it is sure to increase the tension of Donald Trump. In fact, in May, inflation in the US reached a 3-year high.
According to a Reuters report, the rise in the price of gasoline and other petroleum products due to the war in the Middle East has been reflected in US inflation. The U.S. Bureau of Labor Statistics reported on Wednesday that retail inflation (CPI) rose 4.2% year-on-year in May. This is the highest since April 2023. It was 3.8% at the time.
These U.S. inflation projections are similar to economists’ surveys and projections. The strong rise in inflation for the third month in a row highlights the growing pressure on American families. Evidence suggests that most people are now using their savings to meet their expenses. This is the second consecutive month that inflation has surpassed wage growth. This can also put pressure on economic growth.
The renewed war with Iran has heightened global tensions. As a result, the price of international crude oil has increased again. At the time of writing, it is trading at 495.
Meanwhile, the impact of inflation in the US has been directly reflected in the US stock market. The release of US inflation data has caused a stir. The Dow Jones closed down 953 points.
Rising inflation in the US is becoming a political burden for President Donald Trump and his Republican Party. It is trying to maintain control of Congress in November’s midterm elections. Trump promised during the 2024 presidential election to bring down inflation, and it has succeeded. –Agency
