President Trump's Cost of Living Promises

During his 2024 campaign, President Trump pledged to reduce the cost of living for Americans. He specifically promised to lower gasoline prices below $2 per gallon and deliver 2% mortgage rates. Now, two years later, Americans face higher costs across many essential categories, despite economic growth and low unemployment. Recent polling by CBS News shows that nine in ten Americans view prices as the top influence on their economic sentiments, indicating widespread concern over rising living expenses.

Factors Behind Rising Prices

Many economists note that the inflation pressures affecting Americans today began before Trump’s return to office in 2025, with five years of post-pandemic inflation already weighing on consumers. However, the president’s campaign promises had raised hopes for relief.

Some Trump administration policies added to inflation, notably the introduction of tariffs which contributed roughly 2.9 percentage points to overall inflation through February 2026, according to Federal Reserve Bank of New York research. Without these tariffs, researchers estimate, prices would have fallen. Additionally, the administration’s decision to attack Iran in February led to prolonged conflict, disrupting oil shipments and resulting in significant hikes to oil, gasoline, and diesel prices.

Grocery and Energy Costs

President Trump’s promise that groceries would become cheaper has not yet manifested. Since November 2024, the cost of food prepared at home has risen 4%, adding to an earlier 23% increase in the prior four years. Rising fuel and transportation costs, some driven by tariffs and elevated energy prices, continue to push grocery prices higher.

Residential energy costs have also climbed. From December 2024 to July 2025, average monthly electricity costs increased by 12.5%. Natural gas prices more than doubled during this period. Factors include geopolitical conflict, increased exports, and infrastructure expenses. By early 2026, America's average utility bill reached $280 per month—up 12% since late 2024. Households heating with oil faced bills averaging $2,627, a 50% annual jump. These rising energy costs are directly impacting overall household expenses.

Gasoline, Mortgage, and Car Insurance Trends

Trump’s pledge to deliver sub-$2 gasoline has not materialized; by October 2026, the average national price was $4.37 per gallon, up 47% from late February 2026, right before the war with Iran. Diesel prices hit record highs, further driving up consumer goods costs, including groceries.

Mortgage rates, another focus of Trump’s promises, continue to climb. The average 30-year mortgage rate stands at 7.28%, up from 7.04% when he took office in January 2025, despite temporary dips earlier in the year. The median listing price for a home in August 2026 was $408,333, a 4% increase since Trump’s inauguration. The income needed to buy a home now exceeds the national median by a wider margin than at any point since 2005, raising concerns over housing affordability.

Car insurance costs, though exceptionally high in recent years, have seen a slight decrease. Average premiums have fallen 5.5% since their peak in February 2026, a change industry experts attribute more to competition and consumer resistance than to government policy.

Credit Card, Airfare, and Health Insurance Changes

Trump proposed capping credit card interest rates at 10%. However, the measure failed to pass, and as of late 2026, the average rate stands at 20.94%, marginally lower than when he took office. Experts warn that a strict cap could reduce access to credit for many consumers.

Airfare remains high as well, with prices 17% above those in January 2025. The war in Iran has driven up the cost of jet fuel—now at $4.34 per gallon, up 85% from early 2025. Other factors include airline industry changes, such as the shutdown of budget carrier Spirit Airlines.

Health insurance through the Affordable Care Act (ACA) has grown more expensive. Average monthly premiums are now $178, up 58% since 2025, and deductibles have also increased. The Trump administration has responded by issuing $500 checks to about one million ACA plan participants in 30 states.

Prescription Drug Prices and Administration Claims

Prescription drug prices have fallen by 3.9% since Trump’s second term began, the largest drop in more than 60 years according to the administration. Policies linking U.S. drug prices to those in other developed countries and increased competition have contributed to this decline.

The White House maintains that Trump's agenda has curbed inflation, while delivering tax cuts, job growth, and record-high 401(k) balances for American families. However, many key categories—including groceries, energy, gas, housing, and health insurance—remain more costly than before his election, fueling ongoing debate over policy impacts and the administration’s effectiveness at reducing the cost of living.

Source: cbsnews.com.