Economist Henrietta Treyz warned Monday that soaring gas prices thanks to President Donald Trump’s Iran war may soon be followed by another hit: higher food costs.

“Food inflation is the next shoe to drop,” Treyz, the Veda Partners co-founder and director of economic policy, told MS NOW’s Katy Tur.

Treyz drew a stark contrast between the economy during Trump’s second term compared to when former President Joe Biden was leaving office.

“It’s pretty amazing when you think about what the president inherited,” she said. “We were coming off of continuous prosperity, lowering inflation, prices coming down, growth in the manufacturing sector.”

There was “literally nothing you could do to stop the economy under the AI boom and all the rest,” she added, lamenting: “And now here we are.”

The cost of jet fuel has surged with “outright shortages,” causing flight disruptions across Asia and prompting measures in Europe and the U.S., Treyz noted. And there’s more to come, she cautioned.

“Everything that takes diesel or gasoline to move, whether it’s everything you buy at Walmart or your groceries from the store, all that is still to come and to get more expensive,” she predicted.

“So the long-term cost of this war, especially when you’re judging it by the economy that the president was handed, is really just depressing to think about the growth that we could be under,” she added. “Instead, we’re dealing with rising inflation again. The Fed can’t cut interest rates. It’s a bummer.”

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