Wubi News

From gas to groceries, has Trump kept his promise to tackle rising prices?

2025-11-06 09:00:02

During his campaign, Trump pledged to cut electricity bills sharply.

"Under my administration we will be slashing energy and electricity prices by half within 12 months, at a maximum 18 months," he told a rally in August 2024.

Since he became president, prices have risen.

The latest figures show average residential electricity rates reached 17.62 cents per kWh (kilowatt hour) in August 2025 - up from 15.94 cents per kWh in January 2025, according to the US Energy Information Administration.

"It was technically impossible [to halve prices] at the time he made the promise," according to Professor James Sweeney from the Stanford Precourt Institute for Energy.

Electricity prices not only reflect the cost of generation but also the expense of delivering it through "the wires and the transformers and everything else", he explained.

Prof Sweeney attributes the increase to both demand and supply issues.

"We have a surge in demand mostly driven by data centres. People creating images using artificial intelligence are using significant amounts of electricity."

Prof Sweeney says there has been a surge in demand for electricity mostly driven by data centres.

He added that cuts to renewable energy subsidies and tariffs on imported steel - which raise the cost of building new power generators - have also pushed up prices.

Swonk agreed that the AI boom is pushing up prices, especially for those on lower incomes.

"It exacerbates inequality because consumers that have more access to solar panels and renewables tend to be wealthier households," she said.

In response a White House official said that Trump was expanding coal, natural gas and nuclear power, which was "the only viable way to meet the growing energy demand and to lower energy prices".

At a campaign rally in September 2024, Trump extended his grocery pledge to cars, telling supporters: "We're going to get the prices down… groceries, cars, everything".

However, the average price of a new car topped $50,000 (£38,411) for the first time ever in September, up from $48,283 (£37,092) in January according to Kelley Blue Book, a US vehicle valuation research company.

A White House official said the administration had taken historic regulatory actions to "save billions annually".

Trump made a specific campaign pledge of "getting gasoline below $2 a gallon".

On the day he entered the White House the average price for a gallon of "regular" gas was $3.125 (£2.39) according to the American Automobile Association (AAA).

While a long way short of his pledge to get prices below $2, the price of a gallon of gas has fallen to a national average of $3.079 (£2.36).

In response, a White House official pointed us to a gas price comparison website, which had a slightly lower national average of $2.97 (£2.38) per gallon compared with the AAA's data.

The official added that President Trump has quickly unleashed American energy to make gas affordable again for families across the country.