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Trump praises 4.2% inflation
President Donald Trump dismissed new inflation concerns after data showed consumer prices rose 4.2% in May compared with a year earlier, with the reading marking the fastest price hikes since 2023.
“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”
Speaking in the Oval Office on Wednesday, Trump said, "No, I love it. The numbers were great," and added, "You know what I really love? I love the inflation," as he argued prices would fall after the resolution of the Iran war.
ABC News reported that inflation rose for a third consecutive month as the Iran war continued to drive up prices in May, surpassing 4% for the first time in three years.
The ABC News account tied the price pressure to the Middle East conflict, saying the Iranian closure of the Strait of Hormuz prompted one of the largest oil shocks ever recorded.
ABC News also said energy prices soared 23.5% in May compared to a year earlier, and that the average price of a gallon of gas stood at $4.15 as of Wednesday, AAA data showed.
Chicago households feel strain
In the Chicago area, ABC7 Chicago reported that prices in May were up 4.2% compared with a year ago, marking the first time inflation has risen above 4% in three years.
Jacob Robbins, an assistant professor of economics at the University of Illinois Chicago, said, "Prices might continue to go up 10%. What do we do if that happens?" and warned that uncertainty in markets and labor can make households focus on financial preparation.
The report cited Moody's Analytics figures that the typical American household is spending $294 more a month on the same goods and services than a year ago, $456 more than two years ago and $667 more than three years ago.
Patrick De Haan, head of petroleum analysis at GasBuddy, said, "Gas prices in Chicago down 52 cents from a month ago, but as I mentioned, still $1 a gallon more than a year ago for the average motorist."
ABC7 Chicago also said United Way of Northwest Indiana reported that 39% of households in northwest Indiana cannot afford the basic cost of living, and that the minimum cost for a family of four in Lake and Porter counties exceeds $80,000 a year.
Fed pressure and oil shipments
NBC4 Washington reported that Trump claimed relief was on the way because of a secret military operation that had ferried what he said was 100 million barrels of oil through the Strait of Hormuz, which the report described as the primary shipping channel for 20% of the world’s global oil supply.
“Breaking News Click to pause breaking news tickerpause-simpleClose Breaking News Tickerclose-prominent US CENTCOM says attacks launched on 'multiple targets' in IranIranian media report explosions at various locations across the country Click to pause breaking news tickerpause-simpleClose Breaking News Tickerclose-prominent”
NBC4 Washington said Trump claimed the mission began last month and that it had "resulted in more than 100 MILLION Barrels of Oil making its way through the Strait" and that "More than 200 Commercial Ships have safely traveled through the Strait."
The ABC News account said a persistent increase in consumer prices may put pressure on the Fed to raise interest rates as a means of dialing back inflation.
ABC News also reported that core inflation clocked at 2.9% over the year ending in May, while overall inflation stood at its highest level since April 2023.
In the same ABC News report, Janelle Jones said, "Americans are getting crushed by high prices and they're telling us every chance they get that they can't keep up," as it described inflation outpacing wage gains for the second consecutive month.
