• Kevin Hassett says food price increases have dropped to minimal levels
  • Official data shows food prices remain elevated despite slowing inflation rate
  • Administration proposes economic measures including dividend payments and long-term mortgages

White House economic adviser Kevin Hassett declared this week that the rate of food price increases has slowed to "almost nothing," pointing to what he characterized as significant progress in the administration's battle against inflation.

Speaking in his capacity as a senior administration official, Hassett claimed current food inflation is now approaching the Federal Reserve's target, marking a substantial improvement from earlier peaks. The comments come as the Trump administration seeks to reassure Americans about affordability concerns ahead of the 2026 economic targets.

However, the optimistic assessment faces scrutiny from economists who note that while the rate of increase has moderated, food prices remain substantially higher than when the administration began its current term in January 2025. Staples including milk and hamburger continue to trade at levels that consumers describe as "way higher" than during the president's first term, according to people familiar with grocery purchasing patterns.

Efforts to combat inflation have become central to the administration's economic messaging, with Hassett highlighting proposals including tax-based dividend payments to Americans and the introduction of 50-year mortgages to ease cost-of-living pressures. These measures are designed to preserve consumer purchasing power while the administration works to restore economic growth to 3-4% by early 2026.

A government shutdown earlier this year negatively impacted GDP estimates, reducing growth projections by 1-1.5 percentage points, according to administration figures. The economic team now faces the dual challenge of stimulating growth while maintaining inflationary discipline.

When reached for comment on the disconnect between official inflation statistics and the administration's characterization of food prices, a Treasury Department spokesperson declined to provide additional specifics, pointing instead to broader trends showing inflation has "leveled off" across multiple categories.

Multiple economists contacted for this story expressed cautious optimism about the direction of food inflation but noted that consumption patterns and global supply chain factors continue to present challenges. The administration's deficit reduction efforts and tariff policies are being closely watched for their potential inflationary impacts.

Hassett's comments reflect the delicate balance the administration faces in messaging economic progress while consumers continue to feel the pinch at grocery stores. The coming months will test whether the current slowdown in food price increases represents a lasting trend or temporary relief.

Correction: An earlier version of this article misstated the timing of economic growth targets. The administration aims to restore growth to 3-4% by early 2026, not 2025.