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The White House claims to win the price war, but Americans’ bills are going up like crazy
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Hello everyone, today XM Forex will bring you "[XM Forex Platform]: The White House claims to win the price war, but Americans' bills have gone crazy." Hope this helps you! The original content is as follows:
Trump claimed that U.S. prices make it easier to pay bills, and claimed that he had successfully curbed inflation, while the pressure to increase prices for all categories of goods in the United States, from food to furniture to cars, continues to ferment.
He bluntly posted on social media, "Stop making up lies," denying that there is currently an ongoing crisis of unpayable bills. President Trump claimed to have successfully curbed inflation, but in fact consumers are still under significant inflationary pressure.
Retail price increases continue, with core xmserving.commodities increasing significantly
According to DataWeave’s special analysis, the national average price of goods has increased by 5.5% this year at Target and 5.3% at Walmart. The analysis covers approximately 16,000 core products on the two retailer websites.
Another report pointed out that Amazon’s average price increase has exceeded 12%.
In the seven months since Trump’s tariff policy was implemented, Americans have had to bear higher costs on almost everything—from a cup of coffee to a high-end living room sofa to children’s toys.
Food inflation is differentiated, with meat and imported categories under pressure
According to September Consumer Price Index (CPI) data, food inflation has fallen back to 3.1%, in sharp contrast to the double-digit increases during the Biden administration.
However, the prices of some groceries, especially meat, are still running at high levels due to multiple factors. Banana prices rose 8.6%, mainly dragged down by tariffs (almost no bananas are produced in the United States); chicken and egg prices continued to fluctuate due to the bird flu epidemic.
Beef prices are rising across the board——Steak prices increased by more than 19%, and ground beef prices increased by 14%. Ranchers say shrinking herds due to drought are to blame, with tariffs on foreign beef also playing a role. Trump said he is considering increasing imports of Argentine beef to ease cost pressures on consumers.
The White House and politicians stated: Emphasizing policy effectiveness and alleviating pressure on the consumer side
“Completely getting rid of the inflation crisis during the Joe Biden era has been President Trump’s core priority since his first day in office,” White House spokesman Kush Desai said in a statement to the Washington Post on Thursday.
“American people’s spending on daily necessities such as gasoline and eggs has declined. Now the government has once again signed a drug pricing agreement, bringing unprecedented savings in medical expenses to ordinary people.”
He further said that as the Trump administration’s tax cuts and deregulation agenda continues to advance, “stronger economic performance is still ahead.”
Voters listed economic issues as the core issue of this election. The elected socialist mayor Zohran Mandani (Zohran Mamdani) promised to provide public services such as free buses during the campaign. His core demand is to alleviate the pressure of the city's high cost of living.
Vice President JD Vance (JD Vance) urged Republicans on social media to "focus on the domestic economy and people's livelihood" and emphasized: "Affordability will be the core indicator by which voters will judge us in 2026."
People's feelings: increased spending, consumption downgrade, and voter disappointment spread
Chris Sohan, 61, lives in Queens and purchases daily necessities for his wife, son and himself every week. He said he has not felt any cost relief.
“Prices on everything are high,” he said. “Every purchase now costs an extra $50 to $100. I’m not buying more — I used to buy beef every week, now it’s every two weeks, and more often chicken.” Wealthy allies, not ordinary voters like me, if I could choose again, I would never vote for him.”
Costs are passed on to the terminal, and Goldman Sachs warns that consumers will be the final payers
For several months, xmserving.companies have been bearing the main cost pressure of Trump’s tariff policies, which cover major trading partners such as China and Vietnam and involve key xmserving.commodities such as furniture, aluminum products, automobiles and auto parts.
Now, xmserving.companies have begun to pass these costs on to end consumers - economists at Goldman Sachs warn that consumers will become the main bearers of these costs by the end of this year.
According to market data, from January to the end of September, the average price of clothing on Amazon, Target and Wal-Mart increased by 11.5%.
These largePrices of household products, pet products, daily necessities, health and beauty products, and durable goods (including electronic products, furniture, and home appliances) at chain retailers increased by 10.8%, 6.1%, 7%, and 8.3% respectively.
Bill Currence, founder of Cornerstone Consulting Organization, said that xmserving.compared with xmserving.competitors, it is more difficult for Amazon to avoid price increase pressure because its core business model relies on third-party sellers. The agency's clients include Toyota, Volvo and Amazon.
But he added that Amazon "still makes huge profits because of its dominant market share."
Collens pointed out to the "Washington Post" that most xmserving.companies may follow the business logic of "never waste a crisis" - the real key is whether xmserving.commodity prices will return to a reasonable range after the trade war is settled.
Retailer response: Deny price increases across the board, while some products remain stable or have prices reduced
Amazon denies price increases across the board. An Amazon spokesperson responded, "If you carefully screen the product portfolio of any large retailer, you can find items with increased prices. The fact is that we provide Amazon users with xmserving.competitive low-price products...except for normal market fluctuations. There have been no general price increases."
A Target spokesperson said that the xmserving.company has stabilized the prices of some products, such as school supplies. Walmart revealed that it has implemented permanent price cuts on 2,000 items since February.
The impact of tariffs is concrete: Furniture, electronics, and fast fashion xmserving.companies are increasing prices
The impact of tariffs on prices can be illustrated with examples: In October, the Trump administration imposed high new tariffs on medicines, kitchen cabinets, bathroom vanities, heavy trucks and other xmserving.commodities, with furniture tariffs as high as 30%.
Later that month, IKEA raised the price of a three-piece oak bedroom set to $1,049 from $949 in August, and the price of an Uppland sofa rose to $899 from $849.
Federal data show that in September, the price of living room, kitchen and dining room furniture (mainly dependent on imports) increased by 9.5% year-on-year. During the same period, the price of furniture and bedding increased by 4.7%, and the price of home furnishings and supplies increased by 2.8%.
Most low-cost furniture (such as affordable chairs) sold in the U.S. market xmserving.comes from overseas, with China being the main supplier.
Bob King, founder and CEO of Humanscale, an ergonomic office furniture manufacturer, said that even high-end furniture produced in the United States relies mostly on imported textiles and other xmserving.components.
Toys, video games and electronic products are also severely affected by tariffs, and these products generally rely on imported supplies.
In August, Sony will5 raised the price by US$50 to US$550 and blamed the price increase on Trump's tariff policy, saying that the policy caused the xmserving.company US$685 million in losses every year.
According to social media disclosures, the price of a Tyrannosaurus Rex toy at Walmart soared from US$39.92 to US$55 in May.
The retailer's "Born" doll prices rose from $34.94 in March to $49.97 in May, and the price of "Etch a Sketch" toys rose from $14.97 to $24.99 during the same period.
After the Trump administration canceled the tariff exemptions previously enjoyed by fast fashion xmserving.companies (which were used to circumvent US customs duties), these xmserving.companies have also raised product prices.
The impact of the U.S. dollar index linkage trading: the long-short game under inflation differentiation
From the perspective of foreign exchange trading, the current inflation differentiation situation directly affects the fluctuation logic of the U.S. dollar index. Although the overall CPI fell back to 3.1%, the "hidden inflation" caused by rising prices of core xmserving.commodities and consumer cost pressures still supports the Federal Reserve to maintain a relatively hawkish stance and provides bottom support for the U.S. dollar index.
The rise in import costs caused by tariff policies has pushed up the pressure on the U.S. trade deficit in the short term. However, global risk aversion and the weak recovery of non-U.S. economies have limited the downside space of the U.S. dollar, leading to intensified range fluctuations.
However, it is worth noting that since the price rise is based on the increase in import costs and production costs, that is, it is not caused by excessive currency issuance, part of the inflationary pressure may be alleviated through product substitution with cost advantages, that is, the inflation may be one-off.
However, xmserving.combined with the layoffs of more than 1 million people in the United States this year and the previous non-agricultural upset’s portrayal of the labor market, the room for the dollar index to rise is also limited until the U.S. labor market crisis is falsified.
Traders can continue to track inflation data. Its unexpected increase may strengthen expectations that the Fed's policy will maintain resilience and push the U.S. dollar index to remain strong. However, if there are signals such as a downgrade in consumption due to high xmserving.commodity prices and contraction in consumption data, it may trigger profit-taking by U.S. dollar bulls and trigger a short-term correction. That is, short-term inflation will lift the U.S. dollar index, while long-term inflation will weaken the U.S. dollar index.
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