Donald Trump Says He Loves 4.2% May Inflation as Energy Costs From Iran Conflict Rise

U.S. consumer inflation climbed to 4.2% in May, the highest level in more than three years, as rising energy costs tied to the conflict with Iran continued to ripple through the economy.

“Trump says 'I love the inflation' after data shows fastest price hikes since 2023 Inflation rose for a third consecutive month, in line with expectations”

ABC News

President Donald Trump, speaking in the Oval Office on Wednesday, dismissed the government report and said, "No, I love it. The numbers were great."

ABC News

The ABC News report said prices rose 4.2% in May compared to a year earlier, and it also cited a 0.5% increase from the prior month based on U.S. Bureau of Labor Statistics data.

The BBC reported that the third consecutive monthly rise in the U.S. Consumer Price Index left households increasingly feeling the strain of the U.S. and Israel's war in Iran, with the Fed’s long-term inflation target set at 2%.

The Guardian said energy prices accounted for 60% of the overall monthly increases in the CPI, and it cited a national average gas price of $4.15 according to AAA.

While Trump said the inflation figures were good because he expected prices to fall "as soon as this war is over," Democrats framed the same CPI surge as a consequence of Trump’s policies and the Iran war.

Senate Minority Leader Chuck Schumer, D-N.Y., wrote on X that the result was "A new all-time high for Trumpflation," after the Labor Department report showed inflation reached its highest level in three years.

BBC

Sen. Elizabeth Warren, D-Mass., said in a statement that the data showed inflation had surpassed 4% for the first time in three years and called it "a direct consequence of Donald Trump’s failed economic agenda, driven by his chaotic tariffs and illegal war with Iran."

The Spectrum News report also said wage growth in May was 3.4% according to the Bureau of Labor Statistics, and it quoted NerdWallet Senior Economist Elizabeth Renter saying, "With wage growth lagging behind price growth, household budgets are under increasing pressure."

The BBC added that higher inflation raises the likelihood of the U.S. Federal Reserve raising interest rates to curtail spending, with the central bank’s key interest rate-setting committee meeting next week under new chair Kevin Warsh.

Multiple reports tied the inflation jump to the Iran war’s impact on energy supplies, including the closure of the Strait of Hormuz and the resulting pressure on oil and gasoline prices.

“WASHINGTON — Rising gas prices pushed U”

BNN Bloomberg

The BBC said the average price of a gallon of regular petrol in the U.S. was $4.15 as of Wednesday, and it reported that the Strait of Hormuz typically handles shipping around a fifth of the world’s oil and gas.

ABC News reported that the Middle East conflict prompted the Iranian closure of the Strait of Hormuz, a maritime trading route that facilitates the transport of about one-fifth of global oil supply, and it said the energy prices index soared 23.5% in May compared to a year earlier.

The Guardian quoted White House spokesperson Kush Desai saying the newest inflation figures were "at-expectation" and that they reinforce that "despite temporary disruptions as a result of Iran’s efforts to subvert the free flow of energy" the broader economic agenda was delivering results.

With the Fed meeting next week, the BBC warned that higher inflation could push borrowing costs higher, while the Guardian said Warsh believed rates standing at 3.5% to 3.75% should be lowered, aligning himself with Donald Trump.