Donald Trump is failing to meet his election promise to reduce cost of living pressures, with new figures showing Americans are spending more on groceries, shelter and utilities as inflation heats up.

The latest data from the Labor Department showed consumer prices rose 2.9 per cent in August compared to a year ago as companies continued to push the cost of tariffs onto consumers.

The figure marks the highest level since January when Trump returned to the White House.

And in a double whammy for the economy, new data also shows the number of Americans filing for unemployment benefits last week rose 263,000, the worst level in four years, in a sign that the labor market is softening.

“The middle class squeeze on tariffs is here,” Heather Long, chief economist for Navy Federal Credit Unio

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