President Donald Trump is once again insisting that America’s affordability crisis is nothing more than political noise, even as federal data shows prices are still climbing.
Speaking to reporters in Florida on Sunday, Trump claimed the country has already turned a corner. “Our prices are coming down very substantially on groceries and things,” he said. “They’re already at a much lower level than they were with the last administration.”
The numbers don’t match the rhetoric as annual inflation stood at 3 percent in September, according to the Bureau of Labor Statistics. Grocery prices rose 1.4 percent between January and September, and consumer prices overall have climbed an average of 1.7 percent during Trump’s second term. Inflation may have cooled from its peak, but prices themselves have not fallen. They’re simply rising more slowly.
Still, Trump isn’t entirely wrong to point out that some prices have dipped. A complicated web of supply, demand, commodity costs, labor shortages and global conflict influences what Americans pay, and Trump’s own decisions have played a noticeable role, for better and worse.
Pharmaceuticals are one of the clearest examples of prices dropping under pressure from the White House, according to CNN. Trump has leaned heavily on drugmakers to bring down the cost of high-priced medications. His administration recently touted deals that would make certain blockbuster obesity drugs available for as little as $149 a month, far below list prices that often top $1,000. He has also announced pricing agreements with Pfizer, AstraZeneca and others pegging new drug prices to “Most Favored Nation” levels.
When Trump took office, the country was in the middle of an avian flu outbreak that wiped out millions of egg-laying hens, pushing prices above $8 a dozen. Within weeks, his USDA announced a plan to increase farm biosecurity, provide emergency support to farmers who lost flocks and temporarily ease restrictions on egg imports. The measures helped stabilize supply, and prices have since dropped to just over $2 a dozen.
Trump dismantled several drilling regulations he claimed were holding back U.S. production, though those rollbacks have not yet translated into meaningful gains. What did move the market was his very public pressure campaign on OPEC+. Although the cartel denied responding to him, the group increased output several times this year. U.S. oil eventually fell below $60 a barrel, down from $75 when Trump took office, though global conflicts and fluctuating demand continue to drive volatility.
At the same time, many of Trump’s other economic moves have pushed prices higher. His tariffs on foreign goods have raised the effective U.S. tariff rate to 13.6 percent, a tenfold increase from 2024. Importers have passed those costs along to consumers, raising the average household’s expenses by about $1,200 this year. Analysts expect families to pay roughly $1,600 more next year as businesses warn they can no longer absorb the added cost.
Cuts to major safety-net programs, including Medicaid and food stamps, have also left low-income households paying more out of pocket. The administration’s tax and spending bill trimmed or eliminated several popular credits, including the $7,500 electric vehicle incentive.
Despite the mounting evidence, Trump continues to describe the affordability crisis as a fiction. He recently called complaints about high prices a “lie” and a “complete con job.” The White House echoed that line on Friday, claiming that “high prices that resulted from Democrat policies” were already being brought under control and promising “the best is yet to come.”
