Trump Says He 'Loves Inflation' Amid Fastest Price Rise in Three Years

Author, Archi Mitchell

Role, Economic Affairs Correspondent

Published 24 minutes ago

Reading time: 4 minutes

President Donald Trump said he "loves inflation," amid rising prices in the United States last month at their fastest pace in three years.

Data from the Bureau of Labor Statistics (BLS) showed prices rose 4.2 percent in May compared to the previous year.

Prices recorded a 3.8 percent increase in April, following an increase in energy costs in the wake of the US-Israeli war with Iran.

Trump said from the White House: "I love it. The numbers were great. Do you know what I really love? I love inflation."

But he promised that high prices "will drop like a rock" when the war with Iran ends. Later that day, US military forces bombed Iran.

Speaking about the inflation figures on Wednesday, the US President said that US forces carried out overnight operations to seize "millions of barrels" of Iranian oil, and said that this contributed to a slight decrease in oil prices.

He told reporters at the White House: "When this conflict ends… you will see oil drop to its previous level."

The President, on a trip to Iowa in early 2026, pointed out that he saw gasoline sold for $1.85 per gallon, adding, "We will return to those levels very soon."

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Brent crude, the global oil benchmark, is still trading at a much higher price than pre-war levels.

On Wednesday, the US Consumer Price Index rose for the third consecutive month, with families feeling increasing pressure from the US-Israeli war with Iran.

Trump had previously said that inflation was only temporarily accelerating and expected it to subside quickly with the end of the war.

Inflation remains well below its peak of 9.1 percent during his predecessor Joe Biden's term in mid-2022.

However, it represents a political problem for Trump, as voters have prioritized the economy ahead of the November midterm elections.

Rising inflation increases the likelihood that the US Federal Reserve will raise interest rates in an attempt to curb spending.

Total energy bills, including gas and electricity, rose by nearly a quarter in May compared to the previous year, and the price of gasoline was responsible for a large part of this increase.

According to separate data released by the American Automobile Association (AAA), an independent non-profit association providing maintenance and insurance services, the average price of a gallon of regular gasoline in the US is currently $4.15, a sharp increase from $2.98 on February 28, when Trump launched a military attack on Iran.

In response to these strikes, Iran did indeed close the vital Strait of Hormuz, through which about a fifth of the world's oil and gas supplies usually pass, leading to a choking of supplies.

On Wednesday evening, the US military announced that it had launched strikes on Iran for the second time in two days.

The two sides exchanged fire this week, despite the ceasefire that came into effect in April. The conflict had erupted more than three months ago.

Data from the Bureau of Labor Statistics also indicated an increase in the costs of airline tickets, personal and medical care, entertainment, and communications.

The Consumer Price Index (CPI) is a measure of how much prices have risen over a given month compared to the same month of the previous year. The Federal Reserve has set a long-term target of reducing inflation to 2 percent.

Economists have warned that even with a quick resolution to the war with Iran, it could take until 2027 to restore the normal flow of goods through the Strait of Hormuz.

Republican Trump had pledged during his 2024 campaign that reducing inflation would be at the core of his agenda.

However, his opponents seized on his statement on Wednesday, which seemed to embrace rising prices. Senate Democratic leader Chuck Schumer said on the "X" platform: "His contempt for you is boundless."

Trump was also criticized last month after saying he was "not at all concerned" about the financial situation of Americans when it comes to ensuring Iran does not develop nuclear weapons.

Rising inflation poses a challenge for Kevin Worch, the new governor of the Federal Reserve, ahead of his first decision as head of the central bank on interest rates next week.

When inflation is significantly higher than the bank's target rate, the Board of Governors typically raises interest rates. This, in turn, increases borrowing costs and restricts the flow of money in the economy, limiting further price increases and helping to control inflation.

For his part, Aisalk Steel, investment manager at asset management company Wealth Club, said that raising interest rates is "the most logical conclusion from today's data alongside last week's good employment figures."