President Donald Trump has declared he 'loves' the inflation after official figures showed US prices rising at their fastest rate in three years – just as he called off strikes on Iran and signalled a deal to reopen the Strait of Hormuz.
Bureau of Labor Statistics data for May revealed a 4.2% annual increase in consumer prices, up from 3.8% in April, driven by soaring energy costs linked to the US-Israel war in Iran. 'I love it. The numbers were great. You know what I really love? I love the inflation,' Trump told reporters at the White House.
“Trump says he 'loves' inflation as US prices rise 4.2% and he calls off strikes on Iran.”
But he later clarified to the New York Post that his remarks had been taken out of context, insisting he actually loved that inflation was not higher. 'The numbers are going to be phenomenal because what's showing is that despite the fact that we're in a war, the numbers are much lower than anticipated,' he said.
The president promised prices would 'come down like a rock' once the conflict ends, pointing to a trip to Iowa in early 2026 where he saw petrol at $1.87 a gallon. 'We will be back at those levels very soon,' he added.
As Trump spoke, markets rallied and oil prices dipped after the president announced he had called off strikes on Iran and claimed a deal was close that would reopen the vital Strait of Hormuz. The strait, through which about a fifth of the world's oil passes, has been a flashpoint in the conflict.
In his earlier inflation remarks, Trump said US forces had conducted nighttime operations to seize 'millions of barrels' of oil from Iran, which he said had helped ease prices slightly. Brent crude, however, remains significantly above pre-war levels.
Wednesday's inflation reading marked the third consecutive monthly rise, with households increasingly feeling the strain. Energy bills were almost a quarter higher than a year earlier, with petrol accounting for much of the increase, according to separate AAA figures.
The political problem for Trump is clear: voters rank the economy as a top concern ahead of November's midterm elections. Higher inflation raises the likelihood of the Federal Reserve increasing interest rates to cool spending.
Trump has previously argued that inflation is only temporary and will cool rapidly once the war ends. But for now, the combination of climbing prices and the prospect of a deal with Iran leaves markets and households watching for what comes next.