President Donald Trump is trying to convince voters before the Nov. 3 midterm elections that the U.S. economy is rocketing upward. But voters say inflation remains a challenge as the Iran war has pushed up gasoline prices. Grocery bills remain expensive, and high interest rates make it harder to afford a home or a new car. Trump had promised to quash inflation. While inflation hasn't returned to peaks seen during President Joe Biden's term, it has climbed since April 2025. Interest on the 10-year U.S. Treasury note is above 5%. Meanwhile, the gap has widened between gains for the top 0.1% of households and the bottom half of households.

High fuel prices are making it more expensive to drive, fly and buy some goods more than seven months into the U.S.-Iran war. That's prolonging the strain on American households as the midterm elections approach., The chief economist at Moody’s Analytics estimates the war has cost the average U.S. household the equivalent of almost $2,000, including $1,100 related to energy. Motorists and airline passengers so far have borne the clearest consequences from disrupted Middle East oil shipments. The elevated cost of making and moving goods hasn't translated into across-the-board retail price increases. Shoppers may not be spared indefinitely, though.

The Social Security Administration projects a 3.6% cost-of-living adjustment for older adults and people with disabilities starting in 2027. Some recipients say it won't offset rising prices. This adjustment means $75 extra per month for 73 million Social Security beneficiaries and nearly 7.5 million Supplemental Security Income recipients. Inflation continues to pressure household budgets and savings, and some older Americans feel the increase isn't enough. The Social Security Administration faces a looming bankruptcy date if a funding shortfall isn't addressed by Congress. Lawmakers have proposed measures to replenish the trust funds, including lifting the payroll tax cap to generate substantial revenue.