President Donald Trump recently told world leaders at the World Economic Forum in Davos that inflation in the U.S. is no longer a problem.
The U.S. has “virtually no inflation,” he said, adding that “grocery prices, energy prices, airfares, mortgage rates, rent, and car payments are all coming down, and they’re coming down fast.”
But on the ground, the picture looks different.
Super Bowl Snacks Tell a Different Story
According to a new Fox Business article, even hosting a Super Bowl party this year is going to cost more.
A report by Wells Fargo estimates the food bill for a 10-person Super Bowl party will total about $140. That’s up from $138 last year, a 1.6% increase.
Wells Fargo’s report, authored by chief agricultural economist Michael Swanson and colleagues, uses data from Circana and the USDA.
While a 1.6% jump might seem modest, it comes as American households are still adjusting to years of higher prices.
Some items are more expensive than others. Shrimp prices rose 8.1% to $9.10 per pound, and beef is now averaging $10.08 per pound, according to USDA data.
Fresh vegetables like broccoli and cauliflower are up 4%, while celery and cherry tomatoes climbed by 2.6% and 2%, respectively.
There were a few bright spots: prices for fresh chicken wings are down 2.8% year over year.
Dips like salsa and onion-flavored varieties rose slightly by 1.7% and 1.5%, driven mostly by rising labor costs, the report said.
Economists Push Back on Trump’s Claims
Despite Trump’s confident declaration, many economists say inflation is still a concern.
The Consumer Price Index (CPI) showed prices were up 2.7% in December compared to the year before.
Core inflation, which excludes food and energy prices, was 2.6%, according to federal data.
“To say the US has ‘virtually no inflation’ is factually incorrect and a classic Trump overstatement,” said Thomas Ryan, an economist at Capital Economics.
Mark Zandi, chief economist at Moody’s, agreed, saying inflation remains “uncomfortably high,” especially for lower- and middle-income Americans.
He pointed to staples like groceries, electricity, childcare, and healthcare, where prices are still elevated.
Tariffs and Their Impact
Economists also warn that Trump’s tariff policy is putting upward pressure on prices.
The average effective tariff rate in the U.S. is now 17.5%, the highest since 1932, according to Yale University’s Budget Lab.
That includes a proposed 10% tariff on eight European allies if the U.S. doesn’t get control of Greenland.
“Most economists think [inflation] would have been on target except for the tariffs,” said Joseph Gagnon of the Peterson Institute for International Economics.
John Riccio, a Yale policy analyst, estimated that tariffs could cost the average U.S. consumer an extra $1,300 to $1,700 in 2026.
What’s Really Going Down in Price?
Some of the expenses Trump mentioned are trending lower. Mortgage rates, for example, fell from over 7% to around 6.21% after Trump announced that Fannie Mae and Freddie Mac would buy $200 billion in mortgage bonds.
Rent prices also declined slightly, with the national median monthly rent falling 1.3% year over year to $1,356, according to Apartment List.
Gasoline prices have dropped nearly 10% from Jan. 2025, largely due to global oversupply.
A gallon of regular gas now averages $2.81.
But electricity bills are going up, in part because of energy-hungry AI data centers, with prices rising nearly 7% over the past year.
Grocery prices overall are up 2.4%, but specific items have jumped far more. Beef and veal were up 16% year over year in December.
Coffee prices spiked 20% due to weather disruptions in Brazil and Vietnam.
Airfares have declined more than 3% year over year, helped by falling jet fuel prices and lower international travel demand.
But travelers may not feel it, since add-on fees for luggage, seats, and boarding are not included in the CPI data.
The Disconnect
While the White House paints a picture of economic relief, many Americans still feel financial pressure.
Even a casual gathering like a Super Bowl party costs more.
That 1.6% increase in party food prices may sound small, but it represents a broader reality: inflation has slowed, but it hasn’t disappeared.
In everyday terms, Trump says prices are down across the board, but most people shopping for groceries or planning a party know otherwise.
The numbers and the supermarket aisles tell a more complicated story.
IMAGE CREDIT: “President Donald Trump” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.