Topline
President Donald Trump called the renewed focus on “affordability” a “hoax” during a highly anticipated speech on Tuesday in Pennsylvania, his latest jab against the word while spending by American consumers has slowed amid low economic confidence.
Key Facts
Trump claimed prices are declining “very substantially,” adding, “They always have a hoax. Their new word is affordability.”
Trump did not elaborate who he was talking about, though in recent weeks he has pinned the term on Democrats, who campaigned on affordability ahead of a string of election victories across multiple states in November.
“I can’t say ‘affordability hoax’ because I agree the prices were too high,” Trump said, before claiming the word “affordability” makes people believe “Trump has high prices.”
The president continued blaming Democrats for the criticisms he has received on high prices, often calling back to former President Joe Biden’s term.
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.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
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.
