{
  "id": 1693860,
  "title": "Trump says ‘prices are dropping fast’ and the ‘only thing’ going up is your 401(k) — but is he right? How to stay ahead",
  "url": "https://urgent.news/2026/08/18/trump-says-prices-are-dropping-fast-and-the-only-thing-going-up-is",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T10:45:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/economy/policy/articles/trump-says-prices-dropping-fast-104500493.html"
  },
  "original_language": "en",
  "account": "President Donald Trump recently declared that prices are falling rapidly in the United States, while also highlighting the stock market and employment figures. However, recent inflation data paint a more nuanced picture of the economic situation. During remarks in Ohio on August 11, Trump suggested that prices were dropping fast and that the only thing rising was people's 401(k) balances. Yet, the latest government data indicates that while inflation has slightly eased in July, the overall price level is still increasing. The Consumer Price Index (CPI) rose 3.4% in July from a year earlier, down from 3.5% in June but still significantly above the Federal Reserve's 2% target. Despite some price drops, such as in gasoline, groceries, and car insurance, other costs, including shelter, healthcare, and airline fares, continue to rise. This means that while inflation has moderated, Americans are still facing the affordability squeeze. The Federal Reserve, however, remains concerned as inflation is still above its 2% target and has decided to keep its benchmark interest rate steady at 3.5% to 3.75%. Additionally, average hourly earnings have decreased by 0.2% from a year earlier in July, indicating that workers' paychecks are not stretching as far as they once did. Wages have indeed increased, with a 3.3% rise over the past year, but this growth has not outpaced inflation. Meanwhile, the stock market and 401(k) balances have shown positive trends, with the average 401(k) balance reaching $141,000 in the first quarter of 2026, up 11% from the previous year. However, this growth may not be enough to offset the burden of high everyday expenses, and market gains can be quickly reversed when stocks decline. To protect against inflation's impact, experts recommend diversifying investments, including allocating funds to gold, which has seen a 40% increase over the past year. Gold is considered a safe haven as it is not subject to the risks associated with fiat currencies and can act as a hedge against economic uncertainty. For those looking to invest in gold with tax advantages, a gold IRA, such as those offered by Priority Gold, can be a viable option to safeguard retirement savings.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}