Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Rising living costs have been a persistent concern for Americans. Now, President Donald Trump is once again claiming that prices are coming down — but the latest inflation data tell a more complicated story for your wallet.
During remarks in Ohio on Aug. 11, Trump said that "prices are dropping fast," while also touting the stock market and employment (1). The comment came as the latest government data showed inflation had eased slightly in July. Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA.
Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes But there's an important distinction between inflation slowing and prices actually falling. The latest data show that while the rate of inflation has cooled from its pandemic-era highs, the overall price level is still rising.
The Consumer Price Index (CPI) rose 3.4% in July from a year earlier, down slightly from 3.5% in June but still well above the Federal Reserve's 2% target. Prices also rose 0.1% from June to July (2). Some prices did fall in July.
Gasoline dropped 2.9%, grocery prices fell 0.1% and car insurance declined 0.3%. But other costs continued to climb, including shelter, health care and airline fares. In short, Americans are still feeling the "affordability squeeze" — even as the pace of price increases has moderated.
So, what's going on here? Here's a closer look at inflation in 2026 — and how you can capitalize on it. There's an important catch to Trump's claim.
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