President Donald Trump has declared “I love the inflation” after official figures showed that US prices rose last month at their fastest rate for three years, a remark that sparked immediate controversy.
Bureau of Labor Statistics figures for May revealed that prices had increased by 4.2% over the previous 12 months, up from 3.8% in April. The surge was driven by rising energy costs in the wake of the US-Israel war in Iran.
“Trump says 'I love the inflation' as US inflation hits 4.2%, highest in three years, amid Iran war.”
“I love it. The numbers were great. You know what I really love? I love the inflation,” Trump said at the White House. But he insisted the rising prices would “come down like a rock” when the war with Iran was over. The US and Iran have again exchanged fire in recent days.
The president later told the New York Post that his remarks had been taken out of context. “I love the inflation numbers because of what I'm talking about,” he said. “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, and when we're out of that war, the numbers will be at lower numbers than they were even before it started.”
In his earlier comments, Trump said US forces had conducted nighttime operations to take “millions of barrels” of oil from Iran, contributing to a slight drop in oil prices. “When this conflict is over… you will see oil drop to where it was before,” he told reporters.
The president pointed to a trip to Iowa in early 2026, saying he saw petrol selling for $1.85 per gallon, adding that “we will be back at those levels very soon”. However, the global benchmark for oil, Brent crude, is still trading significantly higher than pre-war levels.
Wednesday marked the third month in a row the US Consumer Price Index has risen, with households increasingly feeling the strain of the US and Israel's war in Iran. Overall energy bills including gas and electricity were almost a quarter higher in May than a year earlier, with petrol responsible for much of the increase. According to separate figures from motoring group the AAA, the average price of a gallon of regular petrol has risen sharply.
Trump has previously said that inflation is only heating up temporarily, and he expects it to rapidly cool once the war ends. Inflation is still far below the peak of 9.1% under his predecessor Joe Biden in mid-2022. Still, it poses a political problem for Trump, given that voters have ranked the economy as a top concern ahead of November's midterm elections. Higher inflation raises the likelihood of the US Federal Reserve raising interest rates in a bid to curtail spending — a move that would further squeeze American households.