Mount Pocono, Pennsylvania - President Donald Trump insisted Tuesday that prices were falling "tremendously" for Americans in a rambling campaign-style rally that was meant to address mounting anger over the cost of living.

Speaking at a casino in Mount Pocono, Pennsylvania, Trump was taking his economic message on the road for the first time in months as his approval ratings slump ahead of the 2026 midterm elections.

But the 79-year-old also weaved through a host of topics familiar from last year's presidential run, including dehumanizing, far-right rhetoric on migration and racist swipes at what he called "s***hole" countries.

Trump has angrily rejected what he calls a "hoax" by rival Democrats on affordability, but he has shown signs that he realizes the issue is hurting Republicans ahead of the midterms.

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Instead, the billionaire former reality TV star is trying to convince voters that inflation is the fault of his Democratic predecessor Joe Biden – and that he alone can fix it.

"I can't say affordability 'hoax', because I agree the prices were too high," Trump told the audience.

"But they use the word affordability, and that's their only word. They say affordability and everyone says, 'oh, that must mean Trump has high prices.' No, our prices are coming down tremendously from the highest prices in the history of our country."

Trump insists prices are falling for gas and for key consumer goods like beef, eggs and coffee, even though US inflation accelerated in September to 2.8% on an annual basis.

Supporters who lined up in the biting cold to see him said they were worried about prices but backed Trump to tackle the problem.

"You know he can't fix all that in under a year," Brianna Shay, 26, told AFP.

Much of Trump's focus on Tuesday however seemed to be racist rants about immigration.

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He repeatedly lashed out once again at Somali immigrants, including Democratic Congresswoman Ilhan Omar, and the country of Somalia itself, which he described as "filthy, dirty, disgusting."

Trump has been targeting the community after prosecutors claimed more than $1 billion went to non-existent social services in Minnesota, largely through false billing by a small number of Somali Americans.

Trump also boasted about halting all migration from countries such as Afghanistan, Haiti and Somalia.

In a Politico interview published earlier Tuesday, Trump said he would give the economy an "A-plus-plus-plus-plus-plus" rating.

But Trump's approval ratings have fallen to their lowest point since his return to office in January.

Democrats campaigning on affordability swept elections last month for New York City mayor, and for the governors of New Jersey and Virginia.

Republicans are now looking increasingly nervously at next year's midterm elections, when control of Congress will be up for grabs.