Political battles over perceptions of high prices are expected to be a key factor in the 2026 midterm elections, according to polls.
President Trump emphasizes affordability in second-year agenda
President Donald Trump’s second-year agenda has shifted focus from his MAGA wish list to tackling the cost of living.
WASHINGTON – President Donald Trump claimed he inherited high inflation from former President Joe Biden and slammed Democrats frustrated by a lack of “space” during the war with Iran.
“The word ‘affordable’ is a false term coined by Democrats,” President Trump told reporters at the G7 meeting in France. “Here’s where it’s fake, because I inherited these prices and they made them up.”
Inflation has skyrocketed since the Iran war began on February 28th. According to the Labor Department, the consumer price index rose 4.2% in May from a year earlier. This was the highest inflation rate since 4.9% in the year to April 2023.
Rising prices are a sensitive issue ahead of the midterm elections, when Republicans’ slim control of both houses of Congress is at stake. According to an April Gallup poll, nearly 3 in 10 Americans cited the high cost of living as the most important financial issue facing their families, and more than half of respondents said their financial situation was worsening.
President Trump said he understands that a war with Iran could cause oil prices to rise to $200 per barrel and the stock market to fall by 25 to 30 percent.
But President Trump, while discussing a memorandum of understanding with Iran aimed at ending hostilities, insisted that neither economic package had as bad a result as feared. Oil prices are trading below $80 per barrel, and stock indexes are rising, including the Dow Jones Industrial Average, which topped $52,000 for the first time on June 16.
“Our economy is very resilient,” President Trump said.
But Democrats slammed Trump over inflation, accusing him of “broken promises” to raise prices for housing, food, energy, health care and child care. Gasoline prices remain high.
“As Republicans continue to fund tax cuts for billionaires, Democrats are focusing on the issues Americans actually care about: affordability,” said Senate Minority Leader Chuck Schumer (D-N.Y.).
President Trump complained about Democrats using the term because inflation was high even before he returned to the White House in January 2025.
Inflation soared to 9.1% in 2022 during Biden’s term due to the COVID-19 pandemic and the war between Ukraine and Russia. But by the time Biden left office, that rate had returned to about 3%.
“They gave it to me,” Trump said of inflation. “They used that word in their farewell speech,” Trump added of “affordability.”
