‘Inflation is back,’ Trump has said, per FORTUNE, adding: ‘I had nothing to do with it’
Trump Denies Responsibility as Inflation Rises
President Donald Trump campaigned on a promise to lower the cost of living, but with inflation on the rise, he insists he’s not to blame.
In an interview with Fox News’ Sean Hannity on Tuesday night, Trump sat down with Elon Musk to discuss their relationship, a $10 million settlement Musk’s social media platform paid to Trump, and the state of the economy.
Inflation Heats Up, Trump Shifts Blame
At one point, Musk claimed Trump inherited a $2 trillion deficit from the previous administration. Trump agreed and, without prompting, added:
“And inflation is back. I’m only here for two and a half weeks.”
“I had nothing to do with it,” he continued. “They spent money like nobody has ever spent.”
After months of steady decline, inflation accelerated in January, rising at a 3% annual rate, according to government data. The Consumer Price Index (CPI) jumped 0.5% from December—the fastest monthly increase in 18 months—driven by higher egg prices, rising gas costs, and still-high housing expenses.
While inflation remains well below its 9% peak in June 2022, it is still above the Federal Reserve’s 2% target. Fed Chair Jerome Powell has urged caution with interest rate cuts, and January’s inflation surge suggests borrowing costs could remain elevated, regardless of Trump’s push for lower rates.
Who’s to Blame?
It’s worth noting that both Biden and Trump were president in January, making it difficult to attribute the inflation spike to either administration.
Economists have warned that Trump’s proposed policies—including mass deportations and tariffs—could be inflationary, but they argue that January’s rise in prices is unrelated to any White House tariff activity.
“The rise in prices is likely unrelated to any tariff activity from the White House,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
However, Moody’s chief economist Mark Zandi suggested that anticipation of Trump’s policies could be influencing inflation expectations.
“Both global investors and American consumers are discounting higher inflation dead ahead,” Zandi said, adding that inflation expectations have been rising since September, when Trump’s lead in election polls strengthened.
According to the University of Michigan’s consumer survey, expectations for future inflation have surged recently. Zandi explained that when consumers expect prices to rise, they tend to buy more now, further fueling inflation.
Trump’s Stance on Inflation
Despite economists agreeing that presidents have limited influence over inflation, politicians still take credit or assign blame when it suits them.
Trump has pinned responsibility on Biden, posting “BIDEN INFLATION UP!” on his social media platform.
Yet, on the campaign trail, Trump has shifted his tone. Initially promising to bring prices down on “day one”, he later told Time magazine:
“It’s hard to bring things down once they’re up. You know, it’s very hard.”