Broad US prices still rising as Trump claims rapid falls

Broad US consumer prices were higher in August 2026 than when Joe Biden left office, contrary to President Donald Trump’s claim that they were “way down” and falling “RAPIDLY”. The consumer price index stood about 6.1% above its December 2024 level and 5.5% above January 2025. [1] [2] [3]

Trump made the claim on Truth Social on 1 October, blaming Democrats rather than Republicans and saying “we are fixing it”. He named no particular products or comparison dates. [1]

The broad index rose 0.4% in August from July and was 3.4% higher than a year earlier. A second measure, the personal consumption expenditures price index, rose 0.3% in August. Some prices did fall: eggs were 23% cheaper than a year earlier, although their price rose during August. The annual inflation rate also eased from 4.2% in May to 3.4% in August. Slower inflation, however, still means prices are rising, not falling. [2] [4]

Trump’s assignment of blame overlooks more than one source of price pressure. San Francisco Federal Reserve researchers identified global supply problems and estimated that pandemic-era income support — including measures enacted in both 2020 and 2021 — may have added to inflation. Federal Reserve researchers have also estimated that tariff changes raised some consumer prices during Trump’s current term; St Louis Fed researchers found that this pressure had moderated by 2026 while other factors had become the main drivers of inflation above the Fed’s target. [6] [7] [8]

Trump directed federal agencies to pursue price relief in January 2025, when he also blamed Biden’s policies for high costs. His October post announced no new measure.