As Trump finishes the first year of his second term — having won the presidency on a pledge to " get the prices down " — the picture on inflation is more nuanced than he or his critics acknowledge. Year-over-year inflation is down from January 2025 — but only slightly, from 3.0% to 2.7%.

President Donald Trump tried Tuesday to concoct an alternative reality on the subject of “affordability” – piling lie on top of lie to try to convince Americans that the issue has vanished.

Exclusive: The year-on-year inflation increase equates to an added cost of $2,120 per household, assuming they purchased the same goods and services in 2025 that they bought in 2024. That includes an increase of $123 on electricity bills and $150 on groceries.

Explore "Trumpflation," a term describing inflation concerns during President Trump's first administration; learn about related policies, debt, and effects on markets.

Most Republicans feel Trump has done more than expected, while others have views that are more mixed.

The concern is whether the president can eventually force short-term interest rates lower, which probably wouldn’t drive jobs higher and might set off more inflation.

President Trump bragged Friday that his tariff blitz has “created an American economic miracle,” while blasting Democrats for handing him a “catastrophically” high budget deficit. Trump shared his assessment of the economy in a Wall Street Journal op-ed, boasting that his sweeping tariffs transformed a “DEAD” nation into the “HOTTEST” in the world.

Relief that President Donald Trump said he’d tap Kevin Warsh to head the Federal Reserve, rather than someone seen as more willing to ignore inflation and slash interest rates, sent the dollar and short-dated Treasuries rallying.