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For Immediate Release
May, 13 2026, 10:48am EDT
Contact:
Wholesale Horror: Producer Price Index Spells Disaster for Economic Outlook as Trump’s War in Iran Drags On
Trump’s war in Iran is now bleeding through the wholesale pipeline. April’s Producer Price Index (PPI) report shows wholesale prices rose 6% over the past year, the largest annual increase since December 2022, with core wholesale inflation at 4.4%. Despite the grim report, Trump said this week that he “[doesn’t] think about Americans’ financial situation,” and it’s clear. The president could not be more out of step with Americans. For working families struggling with high prices, their financial situation is top of mind.
The PPI reading comes just one day after the April CPI report revealed that consumers faced the sharpest inflation in nearly three years, and shows inflation pressures are still building. Rising diesel and jet fuel prices are increasing transportation-related costs. These upstream price increases indicate that families will face additional price hikes at the grocery store and across other everyday expenses in the months ahead.
Groundwork’s Executive Director, Lindsay Owens, shared her reaction to the news:
“Trump’s war in Iran has driven prices through the roof and today’s reading shows there is no end in sight. Inflation has now eaten through a year’s worth of wage gains, painting a brutal picture for working families’ budgets heading into summer. Rather than focus on making life more affordable for Americans, Trump is spending time – and taxpayer funds – on his billion dollar ballroom.”
BACKGROUND
- Wholesale inflation is running hot, signaling higher prices for consumers in the months ahead.
- Final demand producer prices climbed 6% over the past year, the largest annual increase in three years, and 1.4% in April alone, while core wholesale prices (less foods, energy, and trade services) rose 4.4% over the past year and 0.6% in April alone. Wholesale inflation typically runs ahead of consumer prices, so today’s print suggests further price increases are on the horizon for consumers.
- Trump’s war in Iran has closed the Strait of Hormuz for more than two months, and the resulting energy shock is feeding into wholesale prices.
- Final demand energy prices surged 7.8% in April alone, with wholesale gasoline up 15.6% in the month and 39.3% over the past year, diesel fuel up 12.6% in April and 73.8% over the past year, jet fuel up 36.4% in April and 103.8% over the past year, and natural gas is up 4.9% in April and 27.3 percent over the past year.
- The energy shock is increasing wholesale transportation prices: transportation and warehousing is up 5% in April, which includes truck transportation of freight, rising 8.1%, and air transportation of freight, increasing 3.6%. These wholesaler price hikes will feed into price hikes for consumers in the months ahead.
- Trump’s war in Iran is layered on top of his tariffs that continue to raise wholesale prices for tariff-exposed goods.
- Wholesale final demand goods (less food and energy) climbed 4.6% over the past year and 0.7% in April alone.
- Wholesale prices for tariff-exposed goods continued rising, including metals up 35.6% in the past year, electronic components up 27.6%, and communication equipment up 11.9%.
The Groundwork Collaborative is dedicated to advancing a coherent and persuasive progressive economic worldview and narrative capable of delivering meaningful opportunity and prosperity for everyone. Our work is driven by a core guiding principle: We are the economy. Groundwork Collaborative envisions an economic system that produces strong, broadly shared prosperity and power for all people, not just a wealthy few.
LATEST NEWS
Trump Cries 'Virtual Treason' as US News Outlets Detail Iran War Intel Assessments
New reporting on classified US intelligence findings undercuts the Trump administration's repeated claims that it has obliterated Iran militarily.
May 13, 2026
US President Donald Trump on Tuesday accused news outlets of committing "virtual treason" by reporting on classified American intelligence agency assessments showing that Iran has retained significant missile capabilities, contradicting triumphant White House claims that the Middle East country's forces have been utterly decimated.
The New York Times reported Tuesday that the Trump administration's "public portrayal of a shattered Iranian military is sharply at odds with what US intelligence agencies are telling policymakers behind closed doors, according to classified assessments from early this month that show Iran has regained access to most of its missile sites, launchers, and underground facilities."
"Most alarming to some senior officials is evidence that Iran has restored operational access to 30 of the 33 missile sites it maintains along the Strait of Hormuz, which could threaten American warships and oil tankers transiting the narrow waterway," the newspaper added.
The Times reporting came on the heels of a Washington Post story last week detailing "a confidential CIA analysis delivered to administration policymakers" concluding that Iran "can survive the US naval blockade for at least three to four months before facing more severe economic hardship."
The Post also reported that the US intelligence community "found that Tehran retains significant ballistic missile capabilities despite weeks of intense US and Israeli bombardment."
"Iran retains about 75% of its prewar inventories of mobile launchers and about 70% of its prewar stockpiles of missiles," according to the Post, which cited an unnamed US official. "The official said there is evidence that the regime has been able to recover and reopen almost all of its underground storage facilities, repair some damaged missiles, and even assemble some new missiles that were nearly complete when the war began."
In a Truth Social post late Tuesday afternoon, Trump—who has claimed that Iran has "nothing left in a military sense"—fumed that "when the Fake News says that the Iranian enemy is doing well, Militarily, against us, it’s virtual TREASON in that it is such a false, and even preposterous, statement."
"They are aiding and abetting the enemy!" the president continued, declaring that Iran has "no Navy, their Air Force is gone, all Technology is gone, their 'leaders' are no longer with us, and the Country is an Economic Disaster."
On top of intelligence assessments showing that Iran has maintained substantial military capabilities in the face of the US-Israeli onslaught, reports indicate that Iran has inflicted more damage on American military bases and other equipment than the Trump administration has publicly disclosed.
"American military bases and other equipment in the Persian Gulf region suffered extensive damage from Iranian strikes that is far worse than publicly acknowledged and is expected to cost billions of dollars to repair," NBC News reported late last month, citing three unnamed US officials, two congressional aides, and another person familiar with the damage.
A recent Washington Post analysis of satellite imagery found that "Iranian airstrikes have damaged or destroyed at least 228 structures or pieces of equipment at US military sites across the Middle East since the war began, hitting hangars, barracks, fuel depots, aircraft, and key radar, communications, and air defense equipment," an amount of destruction "far larger than what has been publicly acknowledged by the US government."
Phil Gordon, a foreign policy scholar at the Brookings Institution, wrote Wednesday that, "10 weeks in, the strategic failure is undeniable" for the Trump administration in Iran.
"The risk now is that having missed the opportunity to declare victory after the first few weeks, Trump can't accept defeat and humiliation so will keep looking for the next quick fix, thereby likely only making things worse," Gordon warned.
The Trump administration has lashed out publicly at news outlets for reporting on assessments that run counter to the Pentagon's rosy narrative of the illegal war's trajectory. Pete Hegseth, the Pentagon secretary, has condemned American media outlets as "unpatriotic" and warned reporters to "think twice" before publishing classified information.
Earlier this week, The Wall Street Journal revealed that the US Justice Department subpoenaed the newspaper's journalists in March for records related to coverage of the Iran war.
“This is the latest attack in the Trump administration’s war on press freedom," Katie Fallow, deputy litigation director at the Knight First Amendment Institute at Columbia University, said in response to news of the subpoenas. "Time and again, the administration has shown itself willing to disregard the First Amendment and long-standing limits on the use of government power to go after news outlets that publish embarrassing or critical information about the government."
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New York Mayor Mamdani Applauded for Closing $12 Billion Budget Deficit Without Austerity Measures
"We didn’t close the gap on the backs of working people," said Mayor Zohran Mamdani. "We closed it while funding parks, libraries, safer streets and making historic investments in public housing."
May 13, 2026
In announcing New York City's executive budget for the 2027 fiscal year on Tuesday, Mayor Zohran Mamdani proved that when city governments "stand with working families, not billionaires, there is nothing they cannot accomplish," said US Sen. Bernie Sanders, an early backer of the democratic socialist leader.
"Congratulations to Mayor Mamdani," said the Vermont independent senator. "He inherited a huge budget deficit, brought it down to zero, and still invested in childcare, housing, and city infrastructure."
Sanders was among the progressives applauding the announcement by Mamdani and Democratic New York Gov. Kathy Hochul of new agreements between the city and Albany that, along with savings found by Mamdani's administration in the city budget and new taxes on wealthy households, resulted in a balanced budget for the city just four months after the mayor "inherited a $12 billion budget deficit" from former Mayor Eric Adams.
"We didn’t close the gap on the backs of working people," said Mamdani. "We closed it while funding parks, libraries, safer streets, and making historic investments in public housing. Call it pothole politics. Call it democratic socialism. It's government that delivers for the people who make this city run. That’s what New Yorkers deserve. And that’s what we will keep fighting for every single day."
Mamdani emphasized that negotiations with Albany and "months of painstaking work" to analyze the city's spending had allowed the city government to arrive at a "fully balanced budget" without slashing essential services for working New Yorkers.
"Many said the only way out of this was slashing services and passing an austerity budget," said Mamdani in a video his office posted on social media. "We rejected that."
When we came into office, we uncovered a $12 billion budget deficit.
Today, I’m proud to say we brought it down to zero.
We didn’t close the gap on the backs of working people.
We closed it while funding parks, libraries, safer streets and making historic investments in public… pic.twitter.com/TbNu6fhvjs
— Mayor Zohran Kwame Mamdani (@NYCMayor) May 12, 2026
Mamdani and Hochul announced that negotiations between the city and state had resulted in an additional $4 billion in funding from Albany, building on $1.5 billion the governor had committed to providing in February and funding for the city's universal childcare program.
The budget—which is still subject to negotiations with the City Council and final resolution with the state budget—includes the pied-à-terre tax Mamdani announced last month, with second homes valued at over $5 million subject to the tax, as well as a proposed unincorporated business tax on sole proprietorships and LLCs. Those new taxes are set to raise an estimated $500 million and $68 million, respectively, reported David Dayen at The American Prospect.
As Common Dreams reported in March, Mamdani's government found $1.77 billion in savings by combing through the city's spending and finding ways to cut expensive software and technology contracts, shrink the government's "physical footprint" and rental expenses by giving up excess property, and reduce unnecessary overtime. The savings, Mamdani noted, were not achieved by slashing programs for New Yorkers in need.
Dayen reported that the deficit was also closed by delaying a class size reduction law, primarily affecting higher-income schools; restructuring the timing of certain pension payments while making no changes to benefits and continuing to fund city pension funds above the national average; centralizing support funds and making other changes to a rental assistance program; and reducing the use of Carter cases, which allow students with disabilities to have private school education expenses reimbursed by the city.
"Despite endless speculation that a socialist couldn’t manage a budget, Mayor Zohran Mamdani helped close a $12 billion deficit without major cuts to public services—all while continuing investments in parks, libraries, safer streets, public housing, and continuing to inspire millions of people that government can work for the people," said the grassroots progressive political advocacy group Our Revolution.
Olivia Leirer, co-executive director of the local grassroots organization New York Communities for Change, applauded the proposed budget and said the group plans to work with the mayor's office and the City Council to push for a $10 million investment to help low-income families replace inefficient and polluting oil and gas boilers, as well as more investments in childcare for the city's lowest-income families.
"Mayor Mamdani was always going to have to contend with the gaping $12 billion hole that Eric Adams left in our city budget," said Leirer. "While this budget proposal falls short in some areas, it shows that it’s possible to balance the budget without balancing it on the backs of working people. We commend the mayor for pushing Governor Hochul to tax luxury second homes, and we also appreciate the administration’s meaningful investments in childcare and the city’s workforce."
"This commitment is exactly why New Yorkers voted Mamdani into office last fall," she added, "For real, commonsense solutions to alleviate our city’s cost-of-living crisis."
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Trump Picks Former Private Prison Executive to Lead ICE as Industry Profits Surge
One House Democrat said the appointment of former GEO Group executive David Venturella "is to ensure Trump's corporate bosses continue profiting from our communities' pain."
May 13, 2026
The Trump administration announced Tuesday that former private prison executive David Venturella will lead US Immigration and Customs Enforcement in an acting capacity after the agency's current director departs at the end of the month.
Venturella has been a senior adviser to ICE since February 2025 and previously worked at the private prison giant GEO Group for more than a decade, most recently serving as the company's senior vice president of client relations until 2023. GEO Group is a major beneficiary of federal contracts, running immigration detention centers for ICE.
The Washington Post noted that GEO Group also "owns the only company with an ICE contract to track immigrants through GPS ankle monitors."
"A federal ethics rule generally bars government employees from working on contracts awarded to their former employers for one year, but the administration granted him a waiver from this rule," the Post observed.
GEO Group's PAC donated heavily to President Donald Trump's 2024 campaign and has seen a hefty return on its investment. The company reported $254 million in profits for fiscal year 2025—a 700% increase compared to the previous year—and boasted "record-setting new contract wins totaling up to $520 million."
As an ICE adviser, Venturella has advocated for the use of warehouses to detain immigrants, a practice that has drawn nationwide outrage. NBC News noted that "after he retired from GEO, Venturella was a consultant for the company, advising on new and existing contracts, according to a filing with the Securities and Exchange Commission."
The Trump administration's decision to elevate Venturella to the head of ICE comes as congressional Republicans are working to approve tens of billions of dollars in additional funding for the agency, even as deaths in detention rise and immigration officers unleashed by the president continue to face backlash for fatal abuses across the country.
The GOP's budget reconciliation proposal, according to an analysis by the American Immigration Council, includes over $38 billion for ICE to "expand and sustain enforcement operations by hiring and equipping personnel across its divisions, supporting detention and removal transportation, upgrading technology and facilities, and expanding 287(g) agreements with local law enforcement."
Rep. Delia Ramirez (D-Ill.), a lead sponsor of legislation that would terminate all existing federal contracts for immigration detention, said Tuesday that Venturella's appointment as acting ICE chief "is to ensure Trump's corporate bosses continue profiting from our communities' pain."
"But Americans demand oversight and accountability," said Ramirez. "We must Melt ICE, end detention, and dismantle [the Department of Homeland Security]."
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