WASHINGTON – President Donald Trump’s unilateral decision to start a war with Iran has already cost Americans tens of billions of dollars in higher prices, and new government data suggests things are about to get even worse.
The Producer Price Index, which measures wholesale costs paid by businesses that are then passed along to consumers, came in Wednesday at the highest level since early 2022: a 1.4% increase over March and a whopping 6% jump since last April.
A big driver in wholesale prices was diesel fuel, which is used by both trains and trucks — meaning virtually every product in America becomes more expensive as diesel costs increase. Diesel now costs $1.80 more per gallon than it did before the war began, a 50% increase.
University of Michigan economist Justin Wolfers said prices that businesses pay are a “leading indicator” of what’s ahead for consumers.
“One of many, but they’re real prices, and often real prices a bit further upstream,” he said. “A good place to look for where the snake swallows the egg.”
