'Inflation is higher now': Mehdi Hasan trashes Trump's claim of inheriting a bad economy

President Donald Trump keeps claiming that he inherited a terrible economy from former President Joe Biden, and while many Americans believe him, the numbers tell a different story. On Monday, he reiterated the claim when asked about the upcoming Fed meeting and inflation, but was soon called out on X by journalist Mehdi Hasan. Hasan pointed out that inflation was actually lower than what it is today when Trump took office. 

Speaking to reporters aboard Air Force One while traveling to Michigan, Trump was asked about the upcoming Fed meeting, and if he expected any change in interest rates. "They've not hit the inflation target set. They've not hit the 2%," Trump said, claiming he had seen a very good inflation report recently. "Costs are going down rapidly. Don't forget, I inherited the worst inflation in history from Biden. But costs are going down rapidly," the President added. Sharing a clip of his remarks, Hasan pointed out, "He didn't inherit the worst inflation in history from Biden and in fact inflation is higher now than what he inherited from Biden."

Turns out, Hasan is right on paper as the annual U.S. inflation rate stands at 3.5% for the 12 months ending in June, and while it eased up from a three-year high of 4.2% in May, it was still higher than the 3% inflation rate in January 2025, when Trump took office, as per data from the Bureau of Labor Statistics. While the economy did rebound in the initial months, with the Consumer Price Index at 2.4% in January 2026, the war with Iran and Trump's global tariff agenda pushed prices higher across the country.

Gas prices surged, and with the renewed fighting, the average remains above $4 per gallon across the country and poised to climb higher, according to the American Automobile Association. These rising costs at the pump are a direct result of the jump in global oil prices; combined with higher interest rates, the pressure is mounting again on consumers. Moody's Analytics chief economist, Mark Zandi, told NBC News that the war is costing the average household more than $1,200.

Prices for food at home are expected to rise 2.7% across the country this year, which is higher than the grocery inflation shoppers saw in 2024 and 2025 but close to the historical average of 2.6%, the U.S. Department of Agriculture reported Friday. Despite the numbers, Trump vigorously defended his economic policies in Michigan, a state that was particularly hit hard by his tariffs in the automobile sector.  

Speaking at a General Motors plant in the town of Milford, Trump claimed his "historic" tariffs are reinvigorating the auto industry and pushing companies to relocate their overseas operations to the U.S., the BBC reported. The comments come as he ramps up his rally-style push ahead of the upcoming midterm elections in November, and Michigan is expected to be a key battleground state as it swung back in the Republican Party's favour in 2024. However, the state relies heavily on nearby Canada, which has been hit by a range of US tariffs.