Groundwork’s Jacquez Reacts to September CPI Release, Says Working Families Pummeled by Higher Prices

Groundwork’s Jacquez Reacts to September CPI Release, Says Working Families Pummeled by Higher Prices

The Consumer Price Index (CPI) rose 0.3% in September and 3% over the past year, up from 2.9% in August. Inflation remains stubbornly high and shows no sign of easing, leaving families paying more each month for essentials while triple-digit health care premium hikes loom for millions of families. Long-run inflation expectations rose from 3.7% to 3.9%, and consumer sentiment fell 1.5 points, according to the University of Michigan Surveys of Consumers, as Americans lose confidence that prices will come down despite Trump’s promises to lower them.

Alex Jacquez, Chief of Policy and Advocacy at the Groundwork Collaborative, said:

“Prices continue to rise, and families can feel it every time they check out at the grocery store or fill up at the gas pump. Trump’s chaotic economic policies continue to drive up costs for everyday essentials as the job market weakens. Working families are being pummeled by higher prices and the Trump administration has no intention of fixing it.”

This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s actions are deeply unpopular, hurting the economy, and harming America’s workers.

Polling and Economic Indicators on Trump’s Handling of the Economy:

• Prices are climbing across the board. Groceries, gasoline, medical care services, and airline fares drove inflation higher, keeping inflation persistently above the Federal Reserve’s 2% target.
  • Lunchbox staples like deli meat and peanut butter rose by 4.2% and 2.1%, respectively, in just the last month. This comes on the heels of the impending SNAP cliff as a result of the government shutdown that will leave 40 million low-income Americans without vital food assistance benefits unless the Trump administration acts
  • Prices at the gas pump rose 4.1% last month, pushing up energy costs and overall inflation.
• Americans see little hope for lower prices. Consumer sentiment slipped 1.5 points in October and is 28% below its December level, according to the University of Michigan Surveys of Consumers.
  • Year-ahead inflation expectations are now 4.6%, and long-run inflation expectations edged up to 3.9% from 3.7% last month.
  • The Current Economic Conditions Index has only been lower in 2008, during the middle of the Great Recession, and during the high inflation period of 2022.
• Health care is top-of-mind for Americans. 75% of voters, including majorities across party lines, say they are concerned about health care premiums rising, and a growing number of voters (66%) have heard “a lot” or “some” about premiums rising this year, according to new polling from Groundwork Collaborative and Data for Progress.
  • Additionally, 91% of voters said lowering the cost of health insurance premiums should be a priority for President Trump and Congress.
• Health care inflation is accelerating again. After cooling in late 2024, the cost of medical care services has risen sharply in 2025, climbing 3.9% over the past year, 30% faster than overall inflation.
  • Rising health care costs come as millions of Americans will see their 2026 Affordable Care Act premiums more than double due to Trump and Republicans in Congress’ refusal to negotiate with Democrats.
  • Long-term care for people with disabilities and the elderly increased by 7% last month and has increased by 11.6% over the past year. These rising prices will only be compounded by the Republican budget law’s cuts to Medicaid, threatening the livelihoods of both caregivers and those they care for.

• ACA recipients aren’t the only ones facing higher health care premiums. Annual family premiums for employer-sponsored health insurance climbed 6% this year — an increase of $1,408 — to an average of $26,993, according to KFF’s annual benchmark survey. Workers now contribute an average of $6,850 out of their paychecks toward those premiums each year.
• Companies are marking up prices beyond tariffs. New research shows consumers are paying more in higher prices than the government collects in tariff revenue — meaning businesses are using tariffs as cover to raise prices above and beyond their increased costs, squeezing household budgets even harder.
• Low-income families are falling further behind. Reporting from The New York Times shows that overall spending strength reflects the resilience of affluent consumers, not improvements in household conditions for those struggling most.

Additional Indicators:

• 47% of voters believe Democrats would do a better job of keeping the country prosperous, up 3 points from 2024, while 43% think the Republicans would do a better job, down 7 points. This is the largest Democratic advantage since 2012, according to a poll from Gallup.
• 67% of Americans disapprove of how Trump is handling health care  – including 80% of independents — marking the lowest health care approval of his second term, according to a poll from AP-NORC.
• Just 34% of the public approve of Trump’s policies on inflation and the cost of living, while 62% disapprove — his worst ratings on these issues across all CNBC surveys of his second term.
• 62% of Americans believe the U.S. is headed in the wrong direction, with 65% also saying they’re dissatisfied with the direction the economy is headed, according to a new PRRI survey.
  • Even Republicans — nearly 30% — believe the economy is headed in the wrong direction.
  • When asked what they think are critical issues in the U.S., a majority of Americans (59%) say rising housing costs and everyday expenses. It is the only issue that a clear majority of Americans rank as critical.

Expert Commentary:

• Executive Director at Groundwork Collaborative Lindsay Owens commented on recent data that the top 10% of U.S. households now account for nearly all spending: “This isn’t just an inequality story — it’s a macroeconomic story. As the wealthy continue to consume, that’s masking more and more insecurity and instability in the economy under the hood.”
• Lead U.S. Economist at Oxford Economics Bernard Yaros explained the current hiring landscape: “The Fed is highly attuned to the downside risks to a labor market caught in a fragile ‘low hiring, low firing’ equilibrium. Given the downdraft in temporary help payrolls and the average workweek, there’s less of a buffer preventing firms from taking the next step in managing their labor costs: layoffs.”
• Chief Economist of Moody’s Analytics Mark Zandi wrote about the economic challenges confronting U.S. states: “A growing number of states are struggling, some already in recession, others right on the edge. Together, they account for nearly a third of U.S. GDP. The national economy isn’t there yet, but it’s clearly losing steam.”
• Former Assistant Secretary of the U.S. Economic Development Administration Alejandra Castillo laid out how expiring ACA tax credits will affect Americans: “People are living paycheck to paycheck. Just the fact that health care is going to skyrocket at over 112% for individuals is concerning both for your budget, but also for your loved ones. This is about affordability, accessibility, and the fact that we have to fight for what is important for Americans, and that is health care.”