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Today’s Consumer Price Index (CPI) report shows prices rose 0.1% in July and are up 3.4% over the past year. July’s price increase reverses the disinflation seen in June, which was built on a short-lived ceasefire that quickly unraveled. Nearly six months into his war with Iran, the president has failed to swiftly end the conflict and recently said he does not “think about Americans’ financial situation” when negotiating an end to the war he started.
Meanwhile, oil prices are back on the rise, gas is back above $4.00 a gallon, and Trump’s latest tariffs on 99% of imports are now in effect. As the war drags on and Trump’s tariffs work their way to store shelves, prices are poised to reaccelerate in the months ahead. This price squeeze is happening at the same time that workers are struggling to find jobs. The economy lost 23,000 jobs last month, while wages failed to keep pace with prices. Prices are up, jobs are down, and working families are bearing the brunt of it all.
Groundwork’s Senior Vice President of Policy and Advocacy, Alex Jacquez, released the following statement:
“Prices started climbing again in July and Trump’s catastrophic mismanagement of our economy means more spikes in the months ahead. The president said it himself: he is only ‘semi-negotiating’ an end to the war, all while slapping new tariffs on 99% of our imported goods. Trump is not serious about bringing much needed relief to working families who are weary of higher prices at the pump and on the shelves, and who are pessimistic about an economy that is bleeding jobs.”
To speak to a Groundwork expert about this month’s CPI reading, email press@groundworkcollaborative.org.
BACKGROUND
Trump’s war is keeping gas prices high, while families face higher electricity prices to keep cool.
- Energy prices are 14.7% higher than one year ago, with gasoline up 24.6%. Airfares rose 2.2% in July as jet fuel prices climbed, and are up 25.5% over the past year.
- Prices at the pump have climbed above $4.00 per gallon since the collapse of Trump’s ceasefire, and remain 35% above their pre-war level, turning routine trips to work, school, the grocery store, and the doctor’s office into a bigger strain on household budgets. The average household has paid an extra $634 in gas and diesel expenses because of Trump’s war.
- Keeping the lights and AC on this summer has cost families more. Electricity prices are 4.2% higher than one year ago. The average family will spend $792 on their summer cooling bills, up 10.5% from last year. This comes at a time when one in six households is already behind on utility bills.
Paychecks are losing ground to higher prices.
- Wages rose just 3.2% over the past year in July – the slowest pace since 2021 – while prices rose 3.4% over the same period.
- Real private-sector wages fell 0.4% over the past year in the second quarter of 2026, and the savings rate has dropped to 2.7%, the lowest since 2022. Workers’ purchasing power has weakened, and the cushion they lean on during hard times is at risk of disappearing.
Families continue to face higher prices at the grocery store.
- Trump’s war with Iran is increasing the cost of moving food across the country. Diesel prices are up 46% since the war began, raising transportation costs throughout the food supply chain, particularly for fresh and refrigerated products that depend heavily on trucking. Those higher costs are passed along to shoppers at the grocery store, where prices for fresh fruits are up 2.2%, baby food 0.7%, and milk 0.5% in July alone.
- Trump’s tariffs are also showing up in the grocery store. Prices for primarily imported foods such as coffee and seafood increased 10.3% and 7%, respectively, over the past year.
- Food prices remain a major source of financial strain for families. A new McKinsey Institute for Economic Mobility report found that 90% of respondents cited groceries and food prices as a top concern.
Trump’s tariffs are making everyday household goods more expensive.
- Prices for tariff-exposed goods continued to rise in July. Dishes and flatware are up 10.4% over the past year, cookware and tableware up 6.4%, sporting goods up 4.3%, and apparel up 3.9%. Today’s CPI report captures only one week of Trump’s newest tariffs on 99% of imports, and does not yet show much of the impact of Trump’s new pharmaceutical tariffs, which began to take effect July 31.
- Executives are telling investors that tariffs have led to price increases this year, and more price increases may be on the horizon.
- Whirlpool, a manufacturer of home appliances, told investors it had raised prices twice this year in response to tariffs.
- Newell Brands, the owner of famous brands like Rubbermaid, Sharpie, and CrockPot, said tariffs would add $127 million to its costs this year, and that previous price increases “don’t come anywhere close” to covering the added costs, signaling the company could raise prices again.
This content originally appeared on Common Dreams and was authored by Newswire Editor.