Inflation Nightmare Spreads Ahead of Trump's Inauguration... Following Biden's Footsteps?

Rising Food Prices Due to Avian Flu and Climate Change

Lowest Approval Rating for Democrats Amid Inflation

Will Trump's Second Administration Follow the Same Path?

WSJ: "Experts Predict Rising Inflation"

As food prices continue to rise in the United States, there is analysis suggesting that this could become a significant burden for Donald Trump's second administration.

The Wall Street Journal (WSJ) analyzed on the 19th (local time) that "rising food prices will be a major challenge for the Trump administration." The U.S. Consumer Price Index (CPI) growth rate recorded its lowest since early 2021 at 2.4% year-on-year last September, but has since risen again to 2.9% last month.

In particular, last month's food prices increased by the largest margin in a year. This is due to the avian flu causing a surge in chicken and egg prices, and climate change driving up coffee bean and cocoa prices.

U.S. economic media CNBC evaluated that during President Joe Biden's tenure, employment steadily increased and consumer spending remained strong. However, the prevailing analysis is that severe inflation has overshadowed these achievements.

The Democratic Party's approval rating is currently at 36%, the lowest level since 1990. It is analyzed that the Trump administration will also find it difficult to avoid similar criticism if inflation continues.

Experts have a negative outlook on this year's inflation forecast. According to the WSJ, the average inflation forecast for the end of this year is 2.7%, which is 0.4 percentage points higher than the survey conducted last October. The average inflation forecast for the end of next year has also been adjusted upward from 2.3% to 2.6%.

Reporter Lim Dayeon allopen@hankyung.com