New inflation numbers threaten Trump and GOP's plans for tax cuts and tariffs: report
New Labor Department data released Wednesday showed stubborn inflation continued, which could make it difficult for President-elect Donald Trump and his GOP allies to pass certain legislation they've planned.
While the consumer price index increased 2.7 percent in November from 2023, it was also larger than September's 2.4 percent rise, The Washington Post reported.
"While Trump criticized President Joe Biden’s administration for failing to curb inflation, the report makes clear inflation challenges will extend through the next administration, threatening to complicate incoming Republicans’ plans to lower taxes and raise tariffs, policies that could increase inflation," the report said, citing the impacts on Trump's tariff plan.
Housing prices grew by 0.3 percent and were "more than 40 percent of the November rise in overall inflation."
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While housing costs increased, they notably didn't increase as much as other areas, according to the report.
White House economic adviser Lael Brainard said inflation is approaching pre-pandemic levels.
While price increases have been challenging for working families, household incomes are up nearly $4,000 more than prices during the Biden administration, Brainard said.
"Trump’s promised tariffs could further raise prices for some food items because a large proportion of the fresh fruits and vegetables in the United States are imported from Canada and Mexico," the report said.
Trump has already threatened to add a 25 percent tariff on goods from the two countries. He also said that he would issue a 60 percent tariff on goods from China.
Meanwhile, Trump has touted rising grocery prices as a win for him.
“When you buy apples, when you buy bacon, when you buy eggs, they would double and triple the price over a short period of time, and I won an election based on that,” Trump said in an interview with “Meet the Press” Sunday.