US

Trump informs business leaders that inflation has been defeated

Trump claims inflation is defeated, data disagrees

Trump states inflation has been defeated, citing new data. However, economists warn lower-income Americans are still affected by rising prices, with key price increases in food and energy sectors.

  • Trump announces inflation is defeated
  • New data shows mixed price trends
  • Overall consumer prices up 2.7%
  • Food prices increased 3.1%
  • Gasoline prices fell recently
  • Inflation still exceeds Federal Reserve target

Trump asserts that inflation has been defeated, referencing recent data indicating lower price increases in December. However, economists caution that many low- and middle-income Americans continue to face challenges due to rising costs.

New consumer price data shows a yearly increase of 2.7%, unchanged from November. Despite Trump’s optimistic claim, this rate remains above the Federal Reserve’s 2% target, suggesting persistent inflation in the economy.

  • Food prices rose 3.1%
  • Grocery prices increased 2.4%
  • Energy prices up 2.3%

Notably, food prices, a major concern for many, have risen significantly. However, some categories, like used vehicles and certain furniture items, saw price decreases over the past month.

Impacts on Different Demographics

Experts point out that lower- and middle-income households are experiencing the most strain from inflation, even though overall tariff impacts have been less severe than expected. This group continues to feel the pressure of rising costs.

As specific sectors contribute different levels of inflation, understanding these nuances is essential for assessing the broader economic landscape. Consumers remain concerned as essential items grow pricier.

Rachel Patel

Rachel Patel

Senior News Editor

US Business

Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach. Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling. Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption. Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.

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FAQ

Why are lower-income Americans particularly affected?

They face higher relative increases in essential costs.

How does the latest data compare to previous months?

It shows a consistent 2.7% increase from the last month.

What are the main factors driving inflation now?

Rising food and energy prices are key contributors.