US inflation has surged to 0.5% in the past month, with prices for groceries, gas, housing, and other goods and services rising sharply. The cost of car insurance is up 12% year-over-year, while eggs have seen a staggering 53% increase.
President Donald Trump campaigned on ending inflation and making America affordable again. However, his policies have instead prolonged the country’s cost-of-living crisis.
Trump’s initial plans aimed to deliver “emergency price relief” by expanding the housing supply, streamlining healthcare, and eliminating climate rules on home appliances. These measures could reduce costs if implemented. Trump also promised a deregulatory agenda, which would likely lower prices.
The problem lies in the fact that there are limited ways to quickly reduce consumer prices. The Federal Reserve controls borrowing rates, while housing shortages are linked to decades of underinvestment and municipal policies beyond Washington’s control. Ultimately, supply and demand forces dictate prices, with international markets influenced by government policies on a relatively small scale.
Source: https://www.theatlantic.com/ideas/archive/2025/02/trump-living-costs-crisis/681669