Topline
During a much-anticipated address in Pennsylvania on Tuesday, President Donald Trump dismissed the recent emphasis on “affordability” as a “hoax.” This statement comes amidst a slowdown in consumer spending linked to diminished economic confidence.
Trump asserted that prices are decreasing “very substantially,” and remarked, “They always have a hoax. Their new word is affordability.”
Although Trump did not specify who he was referring to, he has recently associated the term with Democrats. The party emphasized affordability in their campaigns that led to several electoral victories across various states in November.
“I can’t say ‘affordability hoax’ because I agree the prices were too high,” Trump commented, suggesting that the term “affordability” creates a perception that “Trump has high prices.”
The president continued to attribute criticisms about high prices to Democrats, frequently referencing the tenure of former President Joe Biden.
Although Tuesday’s speech was intended as a major economic address, Trump diverged into other subjects, including renewed criticisms of Rep. Ilhan Omar, D-Minn., and Somali immigrants.
Tuesday’s speech was billed as a high profile economic address, though the president veered into numerous other topics, including renewed attacks on Rep. Ilhan Omar, D-Minn., and Somali immigrants.
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Are Prices Actually Dropping?
Inflation in September—the most recent month data is available—was at 3% in the Consumer Price Index, matching the start of Trump’s second term in January and coming in well above the Federal Reserve’s target of 2% inflation. Price increases had been cooling early in Trump’s term, with inflation reaching a four-year low of 2.3% in April, before rising again after Trump announced his sweeping “Liberation Day” tariffs. Prices are down for gas, however: The average price for a gallon of gas in the U.S. reached its lowest point in nearly five years on Tuesday, according to data from GasBuddy. Prices for eggs and butter have also fallen since the start of Trump’s term. However, beef prices have increased, with some types such as ground beef reaching an all-time high just last month. The cost of coffee has also spiked due to a mix of Trump’s tariffs and poor weather, according to the Associated Press.
