President Donald Trump announced in September that, despite ample evidence to the contrary, “We have almost no inflation anymore.”
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The president explained that he has “already solved inflation” for America, and that is evidenced by the fact that “costs are down.” GOBankingRates breaks down the reality of the situation and what that means for your wallet.
Inflation: The Reality
The data (and the everyday costs they reflect) tell a different story. As reported by CNN, the annual inflation rate is at its highest level (2.9%) since January 2025, and that consumer prices continue to raise.
A number of economists have noted that President Trump’s own policies — specifically immigration crackdowns at workplaces, and levying tariffs upon nearly all goods being imported to the United States — are helping to increase the average price of most retail and grocery items, rather than decreasing them.
What does that mean for you? Essentially, it means that you’ll continue paying more at checkout for the time being.
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Grocery Prices Will Continue To Rise
As Jay Zigmont, PhD, certified financial planner (CFP) and founder of Childfree Trust Estate Planning, told GOBankingRates, “The Trump administration’s policies have not helped inflation, at least when it comes to groceries. Beef prices are nearly double what they were just five years ago.”
“While there may be some areas of the economy where inflation is coming down,” Zigmont continued, “it has not been seen in the average household.”
Specifically, food prices have seen their highest monthly price in nearly three years, spiking by 0.6% from July 2025 to August. A great deal of this was due to tariff-related price hikes. Coffee alone has increased in price by 3.6% between July and August (the largest jump the product has seen since 2011), and as CNN has noted, coffee prices overall are 20.9% higher than they were a year ago.
Produce prices are also on the rise. For instance, tomatoes (most of which are imported from Mexico), were noted to have a 4.5% leap in price from July to August as a result of a 30-year trade agreement with Mexico falling apart.
Elsewhere, President Trump’s immigration policies have shaken the agriculture and food-service industries, both of which rely upon immigrant workers. With the workforces of both industries being thinned out by mass arrests and deportations, labor costs have increased. In turn, food prices have increased, as well.
Clothing And Accessories Are Getting More Expensive, Too
Groceries aren’t the only everyday items getting more expensive. Jewelry prices made their biggest one-month price increase in over 100 years, increasing by 6.8% from July to August. Women’s outerwear followed at 4.4%, and men’s pants and shorts at 4.2%.
The Bottom Line
Despite President Trump’s assertions to the contrary, costs are not down in America. By nearly all metrics, they appear to be increasing at a modest but steady pace. Unless there are significant changes to America’s current tariff or immigration policies, the market will likely continue to respond with gradually higher prices of everyday goods.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: When Trump Says He Has ‘Solved’ Inflation, This Is What It Means for You
