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Posted on 09/15/2026 4:12:57 PM PDT by MinorityRepublican
The war with Iran is driving up inflation, and borrowing costs may increase for Americans, according to a new report released Tuesday by the Congressional Budget Office.
The report found the war was responsible for more than one-third of the increase in inflation this year, and inflation will likely continue to grow in the first quarter of next year. The CBO specifically blames the war for more than 40% of inflation during the second quarter of 2026 and an estimated half a percentage point of higher inflation during the first quarter of 2027. Interest rates are likely to rise as a result, making borrowing costlier, the report found.
Interest rates are likely to keep rising as a result, making borrowing more costly, the report found. The rate on the typical 30-year mortgage was under 6% before the war started; it was at 7.22% on Tuesday, according to Mortgage News Daily. Wall Street, likewise, expects the Federal Reserve to raise its key interest rate Wednesday in a bid to tamp down inflation.
The main driver of increased inflation is fewer oil and natural gas shipments through the Strait of Hormuz and the Red Sea, the CBO report says. The average price of a gallon of gasoline in the U.S. is up 45% since the beginning of the war, hitting $4.32 as of Tuesday. Diesel, which is essential to the economy as it fuels farm equipment and other commercial vehicles, has increased 66%, to a record $6.26.
The Congressional Budget Office is a nonpartisan federal agency controlled by Congress that conducts analysis related to the federal budget and the economy.
The estimate comes a day after the Pentagon’s watchdog found the Iran war resulted in a shortfall of U.S. munitions and “bottlenecks” in supply chains.
(Excerpt) Read more at nbcnews.com ...
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How about “insane deficient spending for decades is causing inhalation for 200, Alex?”
Inflation eased in July. This makes no sense.
Still worth it to bring an end to a mess that other administrations tolerated, and in some cases facilitated, since 1979.
The CBO is rat/deep state tool. It is no way objective or non partisan. This release is intended to influence the mid terms
I feel like I’m on a jury...
Will yeah because the ignorant, good-for-nothing “journalist” who wrote that meant to say “certain costs”.
Blame Iran, they started it in 1979.
This really isn’t war. In war, there are two sides fighting. The Iranians are the junior high team vs the starters for the high school.
CBO can blow it out their ying yang. Jo Pedo’s “25 million” is what is driving up inflation for Americans. Walmart can’t keep its shelves full anymore.
Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.
Under Biden, inflation was explained as a sign of a growing economy.
Gas went up. Thats all theyll talk about.
….it was “transitory”…. A necessary tool to for recovery
Gas is way down near me.
How about the 40 year war on oil, coal, water, and nuclear that has put us in this position. Or the closing of farms, ranches, orchards, and land? No, it is all Trump’s fault.
Firstly, nothing that involves humans is nonpartisan.
Second, this “little excursion” has gone on long enough and now grown enough that it will take two or more years to find a new equilibrium at higher prices but only after it ends. The stocks of petroleum that have softened the blow are depleted, that cushion is gone. Until then, for those of you that may not remember or even know about it, the period we are in for is called Stagflation.
From what I recall Stagflation was only made worse in the 70s by monetary policy that attempted to control inflation by drying up demand. They were trying to lower costs, or at least slow their progression, that had been decided, not by market forces but by geopolitical actions that created a market shortage of a vital commodity. Just like now.
It takes time for high costs of petroleum to work its way through the economy but it starts at the pump and ends up on the dinner table and other places. Everything that petroleum touches goes up in price.
The rest of Trump’s term will be spent trying to end this war, mopping up the mess it made and trying to do damage control. Most of it all is unnecessary and self-inflicted in my opinion.
When it ends or quiets and without regime change we will still have Iran and they will still be trying to get nuclear weapons and they will still threaten peace and they will still have ambitions to bully the world when they don’t get their way by choking off oil supplies. To keep this from happening will take more than I think we are willing to give and sure were not prepared to offer on February 29, 2026. If we are somehow willing to do what it takes to rid the world of Iran as we know it there is an even much bumpier road ahead. Even without the IRGC and Mullahs Iran is still full of Iranians that put the Ayatollah in power to begin with. Nation building, we have done so well with that in the past. Want some more?
If we are somehow willing (and can replenish our armories) to do what it
takes to rid the world of Iran, there is an even much bumpier road ahead.
Nation building.....ah yes, I remember it well.
The US has done “so well” with that in the past.
Trump himself got popularly elected reassuring
voters he wouldn’t truck with that loser routine.
If we are somehow willing (and can replenish our armories) to do what it
takes to rid the world of Iran, there is an even much bumpier road ahead.
Nation building.....ah yes, I remember it well.
The US has done “so well” with that in the past.
Trump himself got popularly elected reassuring
voters he wouldn’t truck with that loser routine.
Exactly! If nothing is produced you are just increasing the money supply without increasing goods and services produced.
The inflation ( affordability issue) is all a series of Democrat own-goals (as in soccer, points scored against your own team). The arsonists are the Dems, like in LA fire, screaming that their home is burning.
Specific own-goals that were entirely unnecessary, harmful, avoidable and each threw trillions on the bonfire (trillion here, trillion there…):
*Ukraine War - thank you deepstate and senatorial kickback caucus
*Massive deficit spending in “Inflation Reduction Act”
*COVID slowdown and massive grants - DS created the plandemic and ordered panic shutdown that amplified its economic cost
*Massive phony spending bill - “infrastructure act” - not spent on infrastructure
* Tens of millions of illegal immigration and the benefits and crime / terrorism / law enforcement costs thereof
*Dem’s kneecapping the economy with shutdowns and lawfare
*Fraudulent benefit programs promoted/protected by the blue states: Medicare -Medicaid fraud, Home Health Care, Child Care /Learing Centers for “working moms”, Hospice rackets.
*Partisan Fed loosens under Biden crummy productivity, tightens under Trump productivity.
*Lawfare to prevent reciprocal tariffs / reshoring, deportations, DOGE cuts
The corollary Big Lie is Trump owns it. The arson did its worst effects in the following presidential term. This belief the Big Lie / Gell-Mann effect / short voter memory.
Every frigging time, they blow up the money supply and demand that the following Republican admin take economic chemotherapy.
So inflation is all Iran but the Ukraine war has nothing to do with it. Either both have contributed or something else us the cause. I’m no economist, but my suspicion is on reckless government spending.
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