Article Summary –
Consumer price growth has reached its lowest level since February 2021, with a 0.2% increase in September matching the previous two months and an overall inflation rate of 2.4% over the past year. Experts warn that if Donald Trump returns to office and implements proposed tariffs on all imports, inflation could rise significantly, potentially reaching between 6% and 9.3% by 2028, impacting GDP and increasing annual costs for families. Conversely, economic analyses suggest that current and proposed policies by the Biden/Harris administration, including infrastructure investments and cost-lowering measures for consumers, are likely to enhance GDP and curb inflation.
Consumer price growth has reached its lowest point since February 2021, as reported by the U.S. Bureau of Labor Statistics on Oct. 10. Analysts warn that if Donald Trump returns to the presidency and implements new tariffs, inflation will rise again.
The report indicates consumer prices climbed 0.2% in September, maintaining the same rise as the two prior months. Annual inflation reached 2.4%, nearing pre-pandemic figures.
“Inflation is turning a corner,” stated Sen. Martin Heinreich (D-NM), chair of the U.S. Congress Joint Economic Committee, in a statement. “Energy costs are dropping, and wages in most states surpass inflation.”
While Trump and Republicans have often criticized Biden and Harris for rising costs, economists argue that the price hikes mainly originated from global supply chain issues due to COVID-19 and the Ukraine conflict.
The Biden/Harris administration responded with laws to stabilize supply chains and curb consumer expenses. These include the CHIPS and Science Act to strengthen semiconductor production; the bipartisan Infrastructure Investment and Jobs Act to upgrade infrastructure; and the Inflation Reduction Act to provide access to clean energy and affordable healthcare.
In October, they also helped prevent a strike that threatened to disrupt East and Gulf Coast ports.
In August, Harris proposed further measures to cut consumer costs, such as home construction investments, new tax credits, insulin price caps, and grocery price protections.
Trump has advocated for new tariffs on all imports. Experts warn these could reduce GDP and impose an additional $3,900 burden on the typical family annually.
A study by the Peterson Institute predicts that Trump’s economic strategies would lower national income and employment, with inflation potentially reaching 6% to 9.3% by 2028 under these policies.
When Trump implemented a 9% tariff on imported washers in 2017, appliance prices rose 9%, according to University of Michigan economist Justin Wolfers in a tweet.
A Goldman Sachs analysis from September found Harris’ plans would boost GDP in 2025-2026, while Trump’s would hinder economic growth and elevate core inflation.
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