Inflation Climbs Again, Diesel from Russia Draws Bipartisan Criticism
As farmers are busy in harvest season and voters prepare for November’s election, they see another number that makes their lives more expensive: 3.7%. The Consumer Price Index data released on October 15th showed that energy prices continued to fuel higher prices across the U.S. economy.
The annual increase in inflation was higher than the 3.4% that economists had expected. Gas prices drove much of the increase as they rose another 9.1% month to month, pushing them to a record national average of $4.33, according to AAA.
Gas prices have increased $1.25 per gallon over the past year, a significant level that limits profitability and challenges families.
War with Iran raises fuel costs
Markets have been strained since President Donald Trump launched the U.S. war with Iran in February, which strained shipping vessels in the Strait of Hormuz.
To combat voters’ concerns Trump announced an agreement on October 9th with Russian dictator Vladimir Putin to purchase 300,000 tons of its diesel. That initial order could be the first of several, according to Trump. November could bring 500,000 additional tons of diesel from Russia, which could be followed by 1 million tons sometime in the future.
“I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during the month of November, and 1,000,000 Tons immediately thereafter,” Trump announced on social media.
He continued, “Additionally, based on the condition of their Diesel Refineries, Russia will then deliver, within a short period of time, 3,000,000 Tons of Diesel Fuel. Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!”
Trump said in his post that the purpose was to lower fuel prices. “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority. This is a very big and important announcement. Additionally, it must be understood, that Iran will not have a Nuclear Weapon! Thank you for your attention to this matter. President DONALD J. TRUMP”
Why Is the Russian Diesel Deal Drawing Bipartisan Criticism?
Whether Trump goes ahead with his plans could be uncertain following bipartisan criticism from some members of Congress. Ukraine had been an ally of the United States. Although, Trump has criticized that country as it attempts to defend itself from Russian’s invasion, which happened 4 ½ years ago.
“The deal you struck with President Vladimir Putin on October 9th will not achieve just ends, nor will it benefit Americans,” a bipartisan group of U.S. Senators wrote in a letter to Trump.
They warned that lifting previous U.S. sanctions against Putin, “only benefits Putin with more fuel to finance his war machine and enables Russia to continue its brutal attacks on Ukrainian civilians.”
RELATED: Finances for some California producers were so tight that they had to take this action.
