Randros 
As of September 17, 2025, the U.S. economy under President Donald Trump’s second term is facing significant challenges, with rising inflation, increasing unemployment, and escalating grocery prices impacting everyday Americans.
Recent data from the Bureau of Labor Statistics (BLS) and other sources reveal a slowdown in job growth, higher costs for essentials, and declining consumer confidence, prompting concerns about the administration’s policies on tariffs and immigration.
The annual inflation rate climbed to 2.9% in August 2025, marking the fastest pace since January and surpassing the Federal Reserve’s 2% target.
This uptick was driven by increases in key areas such as gasoline, groceries, and airfares.
The Consumer Price Index (CPI) rose 0.4% on a seasonally adjusted basis in August, following a 0.2% increase in July.
Core inflation, excluding food and energy, stood at 3.1% year-over-year.
Analysts attribute part of this rise to the administration’s sweeping tariffs, which have increased costs for businesses and consumers alike.
Headline CPI-U inflation was 0.38% from July to August, with food price inflation at 0.46% and energy at 0.69%.
Food prices have seen notable increases, with overall grocery inflation reaching a two-year high.
Food-at-home prices rose 2.7% annually in August 2025, up from 2.2% in July—the fastest pace since August 2023.
Monthly, groceries jumped 0.6%, the largest increase since August 2022.
Specific categories have been hit harder:
- Beef and other meats have experienced steep price hikes, with ground beef reaching record levels for the seventh consecutive month.
- Eggs, coffee, and produce have also contributed to the surge, exacerbating food inflation projected to rise further due to policy impacts.
Overall food prices in July 2025 were 2.9% higher than in July 2024, varying by category.
A typical $100 grocery bill from pre-inflation periods would now cost around $117.78.
Tariffs and labor disruptions are cited as key factors potentially reigniting food inflation.
| Category | Year-Over-Year Increase (August 2025) | Monthly Increase (July to August 2025) |
|---|---|---|
| Overall Groceries | 2.7% | 0.6% |
| Food at Home | 2.7% | 0.6% |
| Food Away from Home | Not specified | 0.3% |
| Ground Beef (Example) | Record high, up significantly | 4.5% |
Unemployment Rises, Job Growth Stalls, and Long-Term Joblessness Hits Post-Pandemic Peak
The unemployment rate edged up to 4.3% in August 2025, the highest since late 2021, with only 22,000 jobs added—far below expectations.
This marks the 16th straight month above 4.0%, following a long period below that threshold.
The number of unemployed Americans stands at 7.4 million.
Long-term unemployment—those jobless for 27 weeks or more—reached 1.9 million, up 385,000 over the past year, straining workers and the economy.
The long-term unemployment rate increased to 1.13%. College graduates are increasingly affected, a shift from previous trends.
Farmers Grapple with Labor Shortages from Deportations and Tariffs
The agricultural sector is reeling from mass deportation policies and tariffs, leading to labor shortages and export losses.
Over 500,000 immigrants have lost work authorizations, squeezing the ag sector and projected to drive food prices up 14.5% by 2028.
In states like Pennsylvania and Florida, farmers are reducing crops due to worker fears and raids.
Tariffs are exacerbating the issue, potentially leading to a 10% increase in food prices from labor disruptions alone.
Undocumented workers, critical to farming, face heightened risks, with estimates of 225,000 job losses in agriculture from expanded deportations.
Consumer sentiment dropped to 55.4 in September 2025, a four-month low, down from 58.2 in August.
Americans are increasingly worried about jobs, inflation, and tariffs, with expectations for five-year inflation rising to 3.9%.
The LSEG/Ipsos index also fell to 52.4.
Voter Sentiment Reflects Economic Discontent in Polls
A recent Fox News poll shows 52% of voters believe the Trump administration has worsened the economy, compared to 30% who say it has improved—a 22-point margin.
The economy tops voter concerns at 37%, with approval ratings on the issue hitting an all-time low.
Despite strong ratings on border security (57% approval), economic perceptions remain negative.
These developments highlight ongoing economic pressures, with policies like tariffs and deportations contributing to the challenges.
As the administration continues, close monitoring of these metrics will be essential for understanding the path forward.
Also Read: Chief Economist is Now Warning A Third of The U.S. is Already in A Recession
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About The Author
Frank Nez 
