Donald Trump has said he “does not think about Americans’ financial situation” after official figures showed US inflation surged to a three-year high.
America’s consumer prices index rose from 3.3pc to 3.8pc last month in a jump that was bigger than analysts had predicted.
It means prices are rising at a faster pace than wages for the first time since Mr Trump’s inauguration last year, with average hourly earnings up by just 3.6pc in the year to April.
Energy prices jumped by 3.8pc in April alone, the labour department said, and surged by 17.9pc compared with a year earlier.
However, the US president said on Tuesday that “the most important thing” remained preventing Iran from having a nuclear weapon.
When asked about mounting pressure on US households, Mr Trump said: “I don’t think about Americans’ financial situation. I don’t think about that. I think about one thing: We cannot let Iran have a nuclear weapon, that’s all.”
He added: “The most important thing, by far, including whether our stock market – which, by the way is at an all-time high – but including whether or not our stock market goes up or down a little bit, the most important thing by far is Iran cannot have a nuclear weapon.”
It comes as oil prices have soared since Mr Trump began his war in the Middle East at the end of February, with a fifth of the world’s oil and gas exports cut off after Iran closed the Strait of Hormuz.
As a result, gasoline prices for Americans have surged past $4.50 (£3.60) a gallon for the first time in four years. Prices averaged $2.98 before the start of the conflict.
Core inflation, which strips out volatile food and energy prices, also jumped by more than expected – from 2.6pc to 2.8pc.
The data increases pressure on the president, whose approval ratings hit a record low of 34pc at the end of April, according to Reuters/Ipsos polling.
His war in the Middle East is unpopular among Americans, many of whom elected him after he promised to end US involvement in foreign conflicts.
Seema Shah, an analyst at Principal Asset Management, said the figures would also delay the timing of the next cut in interest rates by the US Federal Reserve.
US stocks slumped after the inflation data was published, as investors suggested it was increasingly likely that the Federal Reserve would push up interest rates by the end of the year – something that would increase costs for businesses.
The US benchmark S&P 500 fell by 0.75pc in early trading on Tuesday after hitting a new record high on Monday. The tech-heavy Nasdaq Composite plunged by 1.33pc.
Senators are in the process of approving the nomination of Kevin Warsh, who is expected to take over from Jerome Powell as Fed chairman when his term ends on Friday.
The US president has called Mr Powell – whom he appointed in 2017 – a “moron” and a “numbskull” for failing to lower interest rates.
Mr Shah said: “While the pickup in headline inflation was expected, the upside surprise in core is more consequential. It tentatively hints at broadening price pressures, something the Fed will be reluctant to dismiss.
“With inflation rising to its highest level since 2023 and looking uncomfortably sticky, alongside a more resilient and dynamic labour market, the case for policy caution has strengthened.”
The labour department figures showed the prices of air fares, household furnishings, personal care and education all accelerated during the month.
Fruit and vegetable prices have climbed 6.1pc over the last year, the data showed, while the cost of non-alcoholic beverages rose 5.1pc.
The figures will raise alarm bells around the world as the effects of higher oil and gas prices filter through into the global economy.
UK inflation jumped from 3pc to 3.3pc in March, with the next figures on price rises in the year to April scheduled to be published next week.
