Fact-checking Donald Trump on inflation rate at State of the Union

President Donald Trump inflated his administration’s success in reducing inflation at his Feb. 24 State of the Union address, falsely claiming he inherited “record levels” from President Joe Biden.

“Inflation is plummeting,” Trump said early in his speech. It has eased somewhat during Trump’s second term, but “plummeting” would be an exaggeration.

The year-over-year rise in prices for January 2026 was about 2.4%. That’s lower than the year-over-year rate when he took office, but it had already fallen from a peak of roughly 9% in the summer of 2022 under President Joe Biden. By Biden’s last month in office, year-over-year inflation was about 2.9%. The Federal Reserve aims to keep inflation about 2% year-over-year.

Some items have seen price decreases during Trump’s second term, while others have experienced price increases.
The price of gasoline has dropped about 6%, and the price of new and used cars has dropped by a little under 1%. But groceries are up by about 2%, electricity is up by 6.3%, housing is up by 3.4%, medical care is up by 3.2%, and apparel is up by 1.8%.

However, wages on Trump’s watch have so far risen faster than inflation.

Trump did not inherit inflation “at record levels.” Under Biden, year-over-year inflation peaked at about 9%, which was the highest in around 40 years, not of all time.

By Biden’s last month in office, year-over-year inflation was about 2.9%. The Federal Reserve aims to keep inflation about 2% year-over-year.