The US is facing a growing food crisis in 2025, with food insecurity on the rise and prices continuing to climb. Rising grocery prices have outpaced wages, making it increasingly difficult for many Americans, especially older adults and low-income families, to afford basic food essentials.
Amidst the crisis, US President Donald Trump citing the recent reintroduction of McDonald’s Extra Value Meals worth $5 and $8 by the fast food brand as a sign that prices are starting tom come down for American consumers.
“I want to give a very special thanks to McDonald’s for slashing prices for your most popular items, bringing back Extra Value Meals,” Trump said in recent speech at the McDonald’s Impact Summit in Washington DC, where he emphasised that McDonald’s is “playing a very big role in getting prices down for this country.”
Trump: A McDonald’s loyalist
Known for his personal fondness for McDonald’s, Trump said he felt like one of their “all-time most loyal” patrons, even joking about a campaign trail photo taken before the US presidential elections, where he was seeing working as a “fry cook” for the chain.
US’ inflation picture
Despite Trump’s bold endorsement of the popular food chain, official inflation data relays a different picture. Beef prices in US have been significantly higher at nearly 15% year-on-year, while overall inflation is hovering at around 3%, according to data from US Bureau of Labor Statistics (BLS).
Trump has acknowledged challenges many Americans face with high prices on food and housing but insisted that his administration’s policies were driving inflation back to “normal” levels, Bloomberg reported.
“Affordable should be our word, not theirs,” Trump said, blaming ex-President Joe Biden administration for the highest inflation rates and energy prices seen in history.
He pointed to declines in the prices of eggs, dairy, and other essentials as positive signs and highlighted recent tariff cuts on various food products to further reduce costs.
Is McDonalds subsiding prices to combat inflation?
McDonald’s is reportedly subsidising its value meals to regain budget-conscious customers by sharing the discount cost with franchisees, a move estimated to cost the company around $15 million.
This strategy is a response to customers spending less on eating out or trading down to cheaper options, driven by ongoing inflation, even as the company faces a split customer base between lower and higher-income groups, according to CNBC TV18 and The Curious Economist.