It has been a year since Donald Trump won the presidency with inflation as his central campaign issue. The promise was simple: bring down prices from day one. But Americans are still feeling the squeeze at checkout lines and gas pumps across the country.
Remember those packed rallies where Trump stood surrounded by groceries, promising immediate relief? It’s time for a reality check.
Groceries
The promise: Bring prices down starting on Day One
The result: Fail. Overall prices up by 2.7%
Walk through any supermarket today, and you will notice the uneven landscape of food prices. Coffee lovers are getting hit hard with prices jumping nearly 19% over the past year. That morning cup costs more partly because of new tariffs on Brazilian imports, which supply about a third of America’s coffee.
Ground beef has also taken a bite out of budgets, rising almost 13%. Even bananas, that reliable budget fruit, cost about 7% more than they did a year ago. Overall, groceries are up 2.7% since last September.
Not everything in your cart costs more, though. Eggs, which hit a painful $6.23 per dozen in March due to bird flu outbreaks, have dropped to $3.49. Butter, ice cream, and frozen vegetables have all gotten slightly cheaper too.
It is worth remembering that food prices rarely respond quickly to presidential policies. Weather disasters, global supply chains, and labor shortages all play major roles. Trump’s immigration crackdown might even be pushing some prices higher, since farms rely heavily on undocumented workers, who may make up 40% of agricultural labor.
Electricity
The promise: Cut prices in half within 12 months.
The result: Fail. Rates have increased by about 10% from January to August 2025
Average residential electricity rates have climbed from about 16 cents per kilowatt-hour in January to nearly 18 cents per kilowatt-hour by August.
However, the culprit is not just policy. Data centers powering artificial intelligence are consuming electricity at unprecedented rates, driving demand through the roof. Meanwhile, tariffs on imported steel make it more expensive to build new power plants.
This creates a particularly tough situation for lower-income families. Wealthier households can invest in solar panels and other renewable energy sources, while everyone else faces the full impact of rising rates.
Cars
The promise: Get prices down
The result: Fail. New car prices are up by approximately 3.5%
For the first time ever, the average new car price topped $50,000 in September, up from about $48,300 when Trump took office. Industry experts point to tariffs as a major factor, adding at least a full percentage point to the typical 2% to 3% annual price increase.
Car manufacturers have been absorbing some of those costs, but that cushion will not last forever. Expect steeper increases in 2026 as companies pass along more expenses to buyers.
With new models climbing in price, the most economical move may be keeping the car you already have. If you are worried about expensive car repairs, consider the cost/benefit of a car warranty. You could also think about buying second-hand, which could be better value.
Another option is to reduce your next car loan by $2,000. MyAutoLoan lets you compare offers from four lenders with one quick application. Apply now and potentially lower your monthly payments within 24 hours.
Whether you keep your current car or buy another, compare car insurance to find a cheaper deal. You might save up to $600 a year.
Gas
The promise: Get gas below $2 a gallon
The result: Fail. Gas is now around $3.00 per gallon
In fact, gas prices did fall over the last year. Prices have inched down from $3.125 per gallon in January to about $3.08 recently. That is still far from the promised “below $2” target, but any decrease helps when filling up.
Different sources report varying averages, with some showing prices as low as $2.97 per gallon. While modest, it is one area where costs have actually declined.
Failures or factors beyond Trump’s control?
Campaign promises often collide with economic reality, and Trump’s first year demonstrates how limited presidential power can be over everyday prices. Global events, technological shifts, and policy ripple effects all influence what you pay. Yet some of the administration’s own choices — such as tariffs and reduced support for renewable energy — may have made those promises even harder to fulfill.
With the prospect of further price increases looming, focus on what you control. Stock up when items like eggs or butter dip in price. Consider energy-efficient appliances before electricity rates climb further. If you are car shopping, maybe buy second-hand or keep driving your current vehicle longer while manufacturers navigate tariff strategies.
Prices fluctuate based on countless factors beyond any president’s control. But when leaders make sweeping pledges, they raise expectations that even strong policies cannot easily meet. Your best defense against inflation remains a flexible budget, strategic shopping, and realistic expectations about how quickly economic promises can deliver results in your daily life.
If you are looking for ways to cut costs, Rocket Money automatically finds and cancels unwanted subscriptions, negotiates bills down by up to 20%, and monitors your accounts for hidden fees.
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