President Trump vows to reduce cost of living through policies that have contributed to inflation

President Trump made significant promises during his 2024 campaign, vowing to reduce Americans' cost of living by pushing gasoline prices below $2 a gallon and delivering 2% mortgage rates.

However, just weeks before the midterm elections, the stark contrast between these promises and the harsh economic realities facing many Americans is fueling widespread frustration and discontent. The financial struggles that Americans are experiencing today have their roots in events dating back to the pandemic era.

Economists note that five years of post-pandemic inflation have cumulatively taken a devastating toll on consumers, who are still reeling from its effects. Some of President Trump's policies have also contributed to this upward trend in inflation rates.

Research from the Federal Reserve Bank of New York found that Mr. Trump's economic agenda has added as much as 9 percentage points to inflation through February, while economists polled by FactSet indicate that mortgage rates currently stand at 4%, a significant jump above the Federal Reserve's target of 2%.

The cost of food prepared at home has risen by 4% since November 2024, according to Consumer Price Index data. This increase in grocery prices comes on top of a significant jump of 23% in food prices over the prior four years. The cumulative effect is a substantial rise in costs for consumers who tend to remember pre-pandemic prices and are shocked by each subsequent increase.

As Daco of EY-Parthenon noted, this trend is not limited to groceries; inflation affects various aspects of daily life, including gas prices, restaurant bills, and travel expenses. Consumers are increasingly aware of rising costs, making inflation a pressing concern for policymakers.

In his Economic Club of New York speech on September 27, Trump emphasized the importance of energy independence in addressing economic challenges. He stated that "energy is going to bring us back", a sentiment echoed by his administration's focus on expanding domestic oil and gas production.

The nation's aging power grid is driving up electricity bills as utilities invest in upgrades to meet growing demand. This trend is particularly evident in the buildout of data centers, which require significant amounts of energy. As a result, residential electricity prices have increased steadily since December 2024.

Natural gas prices are also on the rise, with average monthly residential prices surging by 106% between December 2024 and July 2025, according to data from the Energy Information Administration (EIA). This increase in natural gas costs is likely contributing to higher overall energy bills for households across the country.

Advocacy groups The Century Foundation and Protect Borrowers recently reported that the national average utility bill reached $280 per month by early 2026. Notably, this represents a 12% increase since December 2024, just before President Trump took office. As winter approaches, many Americans can expect even higher energy bills.

Forecast models suggest that heating costs will be particularly burdensome during the upcoming winter season. According to the National Energy Assistance Directors Association (NEADA), average household heating expenses are expected to reach $1,030 between mid-November and mid-March 2027.

Vehicle insurance premiums have seen some relief in recent months, with prices dipping by 5% since they reached a high point in February. This drop comes as insurance costs continue to rise in tandem with the increasing cost of new and used vehicles.

The housing market is also experiencing significant challenges, with mortgage rates having climbed steadily from pandemic-era lows over several years now. While there were brief periods where rates dipped below 5%, they have since risen due to surging government bond yields, rising inflation, and escalating geopolitical tensions.

Home buyers are facing a dual challenge: not only are mortgage rates increasing, but home prices themselves are also on the rise. According to Zillow, the median list price for a home in August was $408,333, representing a 4% increase from $392,967 since President Trump took office.

In addition to these economic pressures, credit card holders are also struggling with high interest rates. In a campaign speech, President Trump had promised to put a temporary cap on credit card interest rates, capping them at around 10%.

The proposed rate-cap on credit card interest rates has been met with skepticism by credit experts who warn that it would limit consumers' access to credit. A cap at 10% may seem appealing, but in reality, it could have far-reaching consequences for those seeking loans or lines of credit.

Meanwhile, President Trump's campaign promise to lower airfare costs for travelers appears to be having some positive effects. While fares are still higher than they were in January 2025, recent months have seen a slight easing of prices. However, the overall trend remains upward, with fares standing at 17% above their pre-2025 levels.

The main culprit behind these rising airfare costs is the war in Iran, which has disrupted global oil supplies and led to increased jet fuel expenses for airlines. These added costs are having a direct impact on carriers' bottom lines, prompting them to raise prices accordingly. As a result, consumers are footing the bill for these higher fuel bills.

The shutdown of budget carrier Spirit Airlines in May is another contributing factor behind the current airfare prices. With fewer carriers operating, the market has become increasingly competitive, and airlines are responding by increasing their fares to maintain profitability.

The Affordable Care Act (ACA) health insurance plans have become significantly more expensive for millions of Americans over the past year.

Average monthly premiums have surged by 58% to $178, translating to a yearly cost of $2,136. This sharp increase is evident in data from the nonprofit health group KFF, which analyzed ACA plan costs in May. The substantial hike has left many ACA subscribers struggling to cope with the rising expenses.

Obamacare plan deductibles have also witnessed a drastic rise, increasing by 37% over the same period. What was once an average deductible of $1,027 per person is now a staggering $3,786. This alarming trend underscores the challenge faced by those relying on ACA plans for their healthcare needs.

The rising costs of health insurance under the ACA have directly contradicted President Trump's earlier promise to make the program more affordable and better value for American citizens.