Zhenghao New Materials

The report notes that even before the U.S. and Israeli attacks on Iran, costs for housing, food, and healthcare in the United States had been rising steadily, and the Trump administration's tariff policies continued to push prices higher, leaving many Americans already overwhelmed. Now, with the outbreak of the Iran conflict, Americans, who rely heavily on automobiles for transportation, are facing even higher gasoline prices.

U.S. gasoline prices rose by a staggering 21.2% month-on-month in March, the largest single-month increase since 1967, pushing overall inflation to a two-year high. Data from the University of Michigan shows that the U.S. Consumer Confidence Index fell to its lowest level of the year following the outbreak of the Iran conflict.

Beyond the surge in heating and transportation costs, the sharp rise in fertilizer prices since the conflict began has also fed through to food prices. The report points out that rising inflation means the Federal Reserve will need to maintain high interest rate policies for an extended period.

Low- and middle-income U.S. households spend a larger share of their income on necessities such as food and fuel. Compared with high-income groups, whose wealth is supported by financial assets and growth in the technology sector, low- and middle-income individuals are far more vulnerable to the impact of tariffs and conflicts on their livelihoods.

Even before the conflict erupted, the U.S. job market was showing signs of weakness, with virtually no new private-sector jobs created outside of the healthcare sector. The report concludes that as the escalating conflict continues to pressure the U.S. economy, the job market is expected to weaken further. Even if the U.S. subsequently introduces support measures targeted at low- and middle-income households, the impact of any partial measures will be very limited unless there are substantial adjustments to the price-driving policies.

"The Trump administration currently lacks a clear plan to end the conflict. For the American people, this can only point to one conclusion: price pressures will intensify further."