Trump Says 'Inflation is Solved.' The Data Show Otherwise. — WSJ

What happened

President Trump said in a Fox & Friends interview that "inflation is solved." However, Labor Department data showed consumer prices rose 3.7% in September from a year earlier, and high energy prices are squeezing consumers.

Confirmed

Global impact / market context

Rising consumer prices of 3.7% mean households pay more for everyday goods, leaving less cash available to spend elsewhere. That can slow sales for companies, while voters turning against Republicans on the economy may change expectations for tax and spending policy after the midterms.

Analyst inference

A Wall Street Journal poll found voters now favor Democrats on the economy, after favoring Republicans earlier in 2025. Because the economy ranks as the top midterm issue, shifting voter views could change which party controls Congress and what rules companies face.

Analyst inference

What to watch

1. The next monthly Labor Department consumer price report will show whether the 3.7% annual increase keeps easing or stays high, which shapes how much cash households have left to spend. Confirmed
2. Watch whether the White House proposes new steps on energy costs, since the article names high energy prices as a source of pressure on consumers and would affect fuel and utility bills. Proposed
3. Track Wall Street Journal and other polls on which party voters trust on the economy, because a lasting Democratic lead could shift expectations for taxes and spending rules for companies. Analyst inference

Evidence

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