Trump Loves Rising Inflation as US Prices Hit Three‑Year High
Former President Donald Trump welcomed the latest consumer‑price report, saying he "loves inflation" as U.S. prices jumped to their steepest pace in three years. The Bureau of Labor Statistics recorded a 4.2% increase in May compared with a year earlier, up from 3.8% in April.
The spike was driven largely by higher energy costs, a fallout from the ongoing conflict between the U.S., Israel and Iran. Trump claimed that U.S. military operations, including a strike on Iranian oil facilities, would soon reduce oil prices and help bring inflation down.
He noted that a recent visit to Iowa revealed petrol retailing at $1.85 per gallon, a price he expects to return to earlier levels soon. While the benchmark for oil, Brent crude, remains above pre‑war levels, Trump warned the war’s end would see a rapid drop to historic lows.
Political backlash followed, with Democratic leaders condemning his comments on X and accusing him of downplaying the cost of conflict for Americans. Trump later clarified that he meant inflation was "much lower than anticipated" given the situation in Iran.
Economists argue inflation is still well below the peak of 9.1% seen in mid‑2022 under former President Joe Biden, but that persistent price hikes could prompt the Federal Reserve to raise interest rates. The new Fed Governor, Kevin Warsh, will make decisions next week, and many expect rates to stay between 3.5% and 3.75% unless data shows a sustained uptick.
The consumer‑price index has risen for three consecutive months, stressing that households bear the burden of higher costs for food, travel, healthcare, and communication. Energy bills – especially gas and electricity – rose by almost 25% in May, with petrol prices flagged by the AAA as climbing to $4.15 a gallon from $2.98 in February following Trump‑launched strikes on Iran.
The U.S. and Israel have intensified operations in the Strait of Hormuz, which carries a fifth of world oil. The war has strayed from a ceasefire agreed in April, and both sides have exchanged fire for at least a week. Economists warn full normalisation of the maritime route may not return until 2027.
Trump’s remarks have highlighted the clash between his campaign promise to curb inflation and his public reception of rising prices. The debate underscores the challenge the White House faces ahead of the 2026 mid‑term elections, where the economy is a top voter concern and the Federal Reserve’s stance on rates remains pivotal.
