Trump Says Prices Are Falling. Here’s Why That Would Be Bad

US President Donald Trump has often said that prices overall in the US have fallen since he began his second term in January, a message he repeated at his Feb. 24 State of the Union address. That’s not quite right, nor would he want it to be.

It’s a difficult message for a US president to deliver to a public that is feeling squeezed financially and just wants things to go back to costing what they used to: But a little bit of inflation is actually good for the economy, whereas a drop in prices overall is typically a dangerous sign.