Trump dismisses importance of affordability as costs continue to rise

President Donald Trump downplayed worries about affordability in the U.S., labeling the term a "con job" and claiming, "It doesn't mean anything to anybody." Despite his remarks, recent polls show that Americans consistently rank the cost of living and economic stability among their top three concerns.

Cost of Living Debate

During a cabinet meeting on Tuesday, Trump criticized the concept of affordability, calling it a political tool used by Democrats. "The word affordability' is a con job," he said, adding that some politicians overemphasize the issue.

Economists measure cost of living mainly through the Consumer Price Index (CPI), which tracks the prices of essential goods and services, including food, energy, and commodities. Between September 2024 and September 2025, the CPI rose by 3%, marking a decrease from pandemic-era spikes but remaining higher than the average annual increases during previous administrations.

Food prices specifically increased by 3% over the same period. While this may seem modest, frequent exposure to rising grocery costs can have a significant psychological impact. Thomas Gremillion, director of food policy at the Consumer Federation of America, noted that certain policies, including tariffs and labor shortages due to immigration trends, have contributed to these increases.

Trump cited improvements in egg prices as evidence of progress, but experts clarify that this drop largely reflects recovery from an avian flu outbreak rather than broader trends in food costs.

Energy and Utility Costs

The president suggested that falling electricity prices would reduce overall costs. However, electricity and utility gas expenses have surged over the past year, with electricity up more than 5% and gas services nearly 12%, partly due to infrastructure upgrades and increased energy demand from data centers. Gasoline prices, meanwhile, have seen minor decreases.

Housing Prices Continue to Climb

Rising electricity costs are only one factor contributing to increasing housing prices, which have steadily climbed over two decades. The average home now costs more than $340,000. Shane Phillips of UCLA highlighted tariffs, immigration policies, and reduced labor availability as key factors driving up housing expenses. Construction costs have also increased, compounded by cuts to the Department of Housing and Urban Development.

Healthcare Costs Remain High

Healthcare expenses in the U.S. continue to rise, driven by an aging population, new technologies, and administrative complexity. Ashish Jha of Brown University noted that drug prices, medical innovations, and market consolidation are major contributors. Americans are expected to feel the impact of these costs more acutely in 2026, through higher premiums, copays, and deductibles.

Despite Trump's dismissal of affordability concerns, the economic reality for many Americans shows continued pressures on food, energy, housing, and healthcare costs.

Analysis: The Affordability Debate in Perspective

President Trump's recent dismissal of affordability as a significant issue contrasts sharply with the data and public sentiment. While he labeled the term a "con job," surveys consistently place cost of living and economic stability among Americans' top concerns.

Economically, the Consumer Price Index (CPI) shows a 3% increase from September 2024 to September 2025, with food prices rising at the same rate. Experts attribute these increases to tariffs, labor shortages, and post-pandemic supply disruptions, highlighting that improvements in certain areas, such as egg prices, reflect temporary recoveries rather than systemic relief.

Energy and housing costs also tell a different story than the administration's messaging. Electricity expenses have risen over 5%, gas services nearly 12%, and the average home price exceeds $340,000. Contributing factors include infrastructure upgrades, labor constraints, and policy impacts on housing supply.

Healthcare costs continue to climb due to an aging population, technological advances, and market consolidation, with Americans facing higher premiums and out-of-pocket expenses in the coming year. These pressures indicate that, despite political rhetoric, affordability remains a tangible and growing concern for U.S. households.

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• Trump says affordability ‘doesn't mean anything' despite rising costs