President Donald Trump Claims "Prices Are Dropping Fast," but Trumpflation Data Tells a Different Story -- and That's Potentially Terrible News for Stocks

President Donald Trump's administration has been credited with significant gains in major stock market indices, but recent data indicates that consumer prices are not dropping as claimed. Inflation, driven by Trump's policies, continues to pose a challenge for the economy and the stock market. Tariffs and the Iran war have contributed to rising inflation, with Core PCE showing little to no decline despite lower headline inflation.

The sticky nature of consumer prices suggests that high inflation could persist, negatively impacting the stock market, which has been buoyed by the AI infrastructure build-out.