Supporters of Donald Trump hold up signs demanding lower prices during a speech by the American president at a casino in Mount Pocono, Pennsylvania, December 9, 2025. ALEX WONG/GETTY IMAGES VIA AFP
US President Donald Trump continues to face questions about the cost of living in the United States. Data released on Tuesday, January 13, shows that consumer prices increased by 0.3 percentage points in December 2025, marking a 2.7% rise over 12 months – unchanged from November 2025. That was not the price surge many had predicted following the trade war initiated by the White House – far from it. Yet inflation remains persistently above the 2% target set by the Federal Reserve (FED). Thus, the level is high enough to make it a politically sensitive issue, less than a year before the midterm elections.
Determined not to let Democrats control the narrative, Trump praised, "Great (LOW!) inflation numbers" on his social network, Truth Social. "That means that Jerome 'Too Late' Powell should cut interest rates, MEANINGFULLY!!! If he doesn't he will just continue to be, 'TOO LATE!'" – a direct appeal to the FED president to lower key interest rates at the next meeting on January 27 and 28 to stimulate the economy. Although the central bank has already reduced rates three times by a quarter point at the end of 2025, giving a boost to the currently sluggish job market, that could in turn fuel further price increases.
