President Donald Trump told reporters in Washington that he "loves the inflation" after the Bureau of Labor Statistics showed prices in May rose 4.2% from a year earlier – the fastest increase in three years.
The rise, higher than 3.8% in April, has been driven by soaring energy costs, which the president linked to the war between the US and Iran. Trump said the conflict had pushed oil prices up, but he added, “When this conflict is over… you will see oil drop to where it was before.”
He also referenced a recent trip to Iowa where fuel averaged $1.85 per gallon, implying the nation would soon return to those levels.
The CPI data comes amid a still‑high energy bill – almost a quarter higher in May than a year before – with gasoline hovering at $4.15 a gallon, up from $2.98 in February, when the US launched strikes on Iran.
The U.S. military confirmed it had struck Iran again earlier that week. Both sides have exchanged hostilities, despite a ceasefire that began in April, and the war could affect the Strait of Hormuz for years, potentially delaying the resumption of normal oil flow until 2027.
Trump’s remarks have attracted backlash from opponents. Senate Democratic Leader Chuck Schumer tweeted criticism, calling the president’s attitude “destroys you.”
The pundits say the inflation bit creates a dilemma for the Federal Reserve. With rates currently hovering around 3.5%–3.75%, a rise in inflation could prompt a rate hike to bring CPI back toward its 2% target.
Economists note that the May spike alone isn’t enough to justify a policy shift, but other indicators – such as healthy employment figures – could push the Fed toward tightening.
