What is Inflation?

Inflation is the rate at which prices for goods and services rise over time,
reducing the purchasing power of your money.

In simple terms: when inflation goes up, your dollar doesn’t stretch as far.
When prices rise too quickly — or stay too high for too long — it can strain
households, businesses, and the economy overall.

Inflation can happen for many reasons, such as:

  • Higher production costs (like raw materials or wages)
  • Increased consumer demand
  • Supply chain disruptions
  • Government policies (like taxes or tariffs)

Trump’s Policies and Inflation

Despite promising to “eliminate” inflation, most economists agree that
Donald Trump’s second‑term policies will do the opposite.

Even American‑made products could become more expensive, since many rely on
imported parts. Fewer workers in agriculture, construction, and hospitality
mean higher labor costs that also translate into higher prices.

Trump’s plans — heavy tariffs and large‑scale deportations — could push the
U.S. back to multi‑decade‑high inflation, hurting families and slowing
economic growth.