US President Donald Trump at a meeting on the cost of living at the Mount Airy Casino Resort, in Mount Pocono, Pennsylvania, on December 9, 2025. ALEX WONG/GETTY IMAGES VIA AFP
Even Donald Trump eventually had to admit it. The soaring cost of living has become a central political issue in the United States. After calling it a "Democrat scam" for months, the US president reclaimed the term "affordability" in early January. The word has flourished in public debate since the summer of 2025, notably thanks to the efforts of New York's new Democratic Socialist mayor, Zohran Mamdani. The term has even appeared on the White House's website.
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Mamdani, inaugurated as New York mayor, must now deliver on promises that secured his victory
On paper, real average wages (adjusted for inflation) in the US increased by 1.1% in 2025, pushing up purchasing power. Yet many Americans feel crushed by extremely high prices, especially for day-to-day expenses such as housing, healthcare or energy. The pressure has not eased since the inflation spike that followed the pandemic, and voters blame government inaction. The same issue that cost the Democrats the presidential election in 2024 now threatens to drag down the Republicans in the November midterms.
