Inflation Is Falling, But One Expense Won’t Budge

Inflation had its biggest drop since 2020 on Tuesday, but Americans say they still can’t afford their groceries. 

A new poll from The Washington Post revealed that two-thirds of Americans continue to describe buying groceries as unaffordable. Since before the war started, that number has risen 21 percentage points, from 45%, and rises even higher — to 70% — when focusing on households with incomes between $ 50,000 and $ 100,000. 

Prices have increased steadily since the start of the Iran war, which put a significant strain on the world’s oil supply. Energy costs are an input in almost every good and service, which, when increased, are often passed on to the consumer. Energy costs rose 10.9% in March, 3.8% in April, and 3.9% in May before falling in June. 

Grocery prices saw their largest uptick from 2021 to 2025, rising over 20% from 2021 to 2025. Food costs have risen 3%, and costs overall are up 3.5%. President Trump has said he is confident that when the war ends in Iran, prices will start to decline as oil prices retreat to prewar levels around $70 per barrel. 

White House Press Secretary Karoline Leavitt said the recent inflation report proved Trump’s economic policy is working.

“Tuesday’s CPI report confirmed what President Trump predicted. Prices are falling, and this administration’s economic policies are working. Inflation dropped 0.4% last month, beating expectations and marking the largest monthly decline in more than six years.” She added, “This is real progress made possible by the President’s pro-growth economic agenda.” 

Leavitt praised Walmart for recently lowering its prices. The retail giant said it would lower its prices this summer, and the savings are “designed to help customers and members make the most of the season while spending less on the products they need, want and love most.” Walmart listed a few examples, including ground beef, which went from $6.74 to $5.94; ice cream from $2.97 to $2.50; and a 24-pack of Coca-Cola from $14.97 to $9.97, among others. 

Prices could rise again with energy prices ticking up after the end of the June ceasefire with Iran. Prices are hovering around $85 per barrel with the United States issuing its fifth consecutive day of strikes on Thursday.

Affordability is expected to be one of the most important topics for lawmakers as the midterm elections near. “The number one issue is costs, and we intend to make that the issue till the next election,” Senate Minority Leader Chuck Schumer (D-NY) said in a December interview.