Mount Pocono, PA – President Donald Trump addresses the nation on Tuesday, December 10, 2025, claiming that his administration is “crushing” inflation and “dropping prices tremendously.” However, recent economic data contradicts these claims, with inflation rising in recent months and the cost of some commodities seeing a sharp increase.
In his speech, President Trump declared, “I have no higher priority than making America affordable.” His comments come just ahead of the 2026 midterm elections, as his administration seeks to emphasize the success of its economic policies. But inflation data tells a different story, with prices rising in many areas with no significant decline in consumer costs.
What happened: rising inflation and economic reality
While President Trump has suggested inflation is being curbed, federal data paint a different picture. The most recent report for September 2025 shows inflation increasing at a 3% annual rate. This is in line with the level in January 2025, when Trump took office. Inflation dropped to 2.3% in April, but has risen steadily since then, partly due to new tariffs imposed on imports by the Trump administration.
Federal Reserve Chairman Jerome Powell has also cited tariffs as a major factor behind the recent rise in inflation. “Commodities inflation has increased, reflecting the impact of the tariffs,” Powell said at a recent press conference.
What does this mean for consumers
For many Americans, the economic situation remains challenging. Despite the reduction in petrol prices, many other everyday items are becoming expensive. The Consumer Price Index (CPI) showed that food prices, for example, rose 2.7% in September compared to a year earlier. Since 2020, grocery bills have increased by nearly 49%, putting significant pressure on household budgets.
One area of concern for consumers is the rising cost of beef, which has increased about 17% year-over-year according to CPI data. Shoppers have expressed their frustration, with some resorting to buying only sale items to get their groceries.
Housing and energy prices: an ongoing struggle
Housing affordability remains an important issue for many Americans. Although mortgage rates have declined slightly, the cost of purchasing a home remains out of reach for many families. The Federal Reserve Bank of Atlanta reports that a home buyer today must earn $131,400 annually to afford a typical home—almost double the amount needed five years ago. Additionally, according to a recent report by Bankrate, more than 75% of homes nationwide are considered unaffordable for the average family.
In terms of energy, while gas prices have seen some relief, other costs like residential electricity have increased significantly. Electricity prices are set to increase by more than 10% in the first eight months of 2025, increasing the financial burden on American households. Nearly 1 in 20 households is behind on utility bills, and the average overdue balance has increased by 32% over the past three years.
Trump’s economic rhetoric versus reality
While President Trump has often touted his policies as successful in addressing inflation and making life more affordable for Americans, critics argue that his administration’s actions have yielded inconsistent results. White House spokesman Kush Desai insisted that Trump’s agenda is working, claiming that the administration’s tax cuts, deregulation and energy production policies will continue to reduce inflation and raise wages for American workers.
However, some Republicans, including Representative Marjorie Taylor Greene, have expressed skepticism about the affordability of life under Trump’s policies. “Everyone’s bills are either going to stay the same or go up,” Greene said, adding that the administration cannot ignore the reality faced by many Americans.
Public reactions and what’s next
The economic reality, viewed through the lens of rising prices and stagnant wages, runs contrary to President Trump’s claims of the success of his administration’s policies. For many Americans, rising grocery bills, housing affordability, and the rising cost of utilities are a far cry from the “tremendous” price reductions touted by the President.
As the midterm elections approach, the Trump administration’s handling of the economy will be a major issue for voters. While inflation may ease in 2026, the Federal Reserve predicts, the economic situation is likely to remain the focal point of discussions on the country’s future.
