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In recent statements, President Trump has made several inaccurate assertions regarding the decline in prices for essential goods, such as gasoline and groceries, since he took office. This comes amidst rising costs for some items, attributed to his administration’s tariff initiatives.
While President Trump promotes his economic achievements in media interviews, he has made unfounded claims about record low gasoline prices and has exaggerated the drop in crude oil prices since his inauguration. He has also incorrectly asserted that grocery prices have decreased.
Here’s an overview of these assertions:
False Claim on Gasoline Prices Reaching $1.98
Trump stated on April 22: “I see that we had a couple of states where gasoline was at $1.98 a gallon. Nobody thought they’d see that for years maybe.”
The president has repeatedly claimed that certain states witnessed gasoline prices drop to $1.98 in April—the lowest since his first term. However, this claim lacks accuracy; average gas prices largely remained constant compared to their levels when he assumed office in January.
According to data from the Energy Information Administration, the national average for regular gas stood at approximately $3.14 per gallon during the third week of April, slightly above the $3.11 average when Trump was inaugurated.
GasBuddy, an organization monitoring prices at over 150,000 gas stations nationwide, reported to CBS News that it found no locations selling gasoline for $1.98 in April. The lowest price recorded was $2.19 at a station in Texas.
Furthermore, Trump’s assertion that current gas prices are the lowest since his first administration is also inaccurate; gas prices were lower during the initial six months of President Biden’s term.
The White House did not provide additional clarification regarding the president’s claims.
Partially Accurate Statement on Crude Oil Prices
Trump said on April 24: “Energy is down and we’re about $64 a barrel. When I came in– and we were looking at $89, $90, $95.”
While he correctly indicated that crude oil prices dropped to around $64 per barrel, he overstated the former price, which was closer to $80 at the beginning of his term.
A White House spokesperson noted that Trump referred to the price of Brent crude oil, the global standard. As of April 28, the Brent crude price was accurately quoted as $64 a barrel, aligning with Trump’s statement.
The Energy Information Administration report indicates that Trump’s tariff increases contributed to the reduction in oil prices due to speculation about lower global demand. Additionally, OPEC’s announcement in early April regarding increased oil production added further downward pressure on prices.
Misleading Claims on Grocery Prices
Trump said on April 24: “Groceries are down.”
Trump said on April 17: “Food is down. Groceries, as we call it, are down.”
Trump has claimed that grocery prices have fallen since his presidency began. However, Consumer Price Index data indicates that grocery costs increased by 0.49% in March compared to the previous month and rose by 2.4% year-over-year.
While prices do fluctuate among different products, the White House clarified that the president was referencing reductions in specific items, such as certain fresh vegetables. The USDA‘s Food Price Outlook indicates a 1.1% decline in fresh vegetable prices in March, following a previous 1.7% drop in February. However, the report also highlights price increases for beef, poultry, eggs, and nonalcoholic beverages during the same period.
These price hikes occurred just before the imposition of a baseline 10% tariff on a wide range of goods imported from various countries and additional tariffs of up to 145% on imports from China. Economists predict that the costs of certain grocery items, like coffee and chocolate, may rise as a consequence, which will likely be reflected in data released in the upcoming weeks.
False Statement About Dropping Egg Prices
Trump claimed on April 24: “So we just had a big Easter egg hunt at the White House, thousands and thousands of eggs, and the price was down 87% so we did a great job.”
The president’s assertions about significantly lower egg prices lack clarification about whether he refers to wholesale or retail figures. Although wholesale prices have indeed decreased, he exaggerates the extent of the drop, and data suggests that retail prices for consumers remain high.
Wholesale prices for eggs—what large retailers pay—have dropped notably since mid-March, following a reduction in losses from bird flu. Data from the U.S. Department of Agriculture indicates these prices are approximately 52% lower as of April 25 compared to the beginning of Trump’s second term. The White House has not addressed the discrepancies in the president’s figures.
Retail prices, however, are still near record highs, with the Bureau of Labor Statistics reporting an average price of $6.23 per dozen eggs in March, exceeding the previous high of $5.90 from February.
Reports indicate that it might take “up to three weeks” for retail consumers to see benefits from declines in wholesale prices. If retail prices continue to decline, this should become evident in national averages from the BLS by mid-May.
Source
www.cbsnews.com