Donald Trump declared he 'loves the inflation' as new figures showed US prices rising at their fastest rate in three years – a direct consequence of the escalating war in Iran. Speaking from the White House on Wednesday, the US president brushed off concerns about the 4.2% annual inflation rate, the third consecutive monthly increase since the conflict began. 'No, I love it. The numbers were great,' he said, before adding that the US had been taking out 'millions of barrels of oil' without Iran's knowledge.
The Bureau of Labor Statistics data showed prices rose 4.2% in May from a year earlier, up from 3.8% in April. Before the war started in February, inflation stood at 2.4%. Energy costs drove the increase, with the closure of the Strait of Hormuz – which typically ships around a fifth of the world's oil and gas – choking supply. The national average price for a gallon of petrol hit $4.15, according to AAA, a sharp rise from $2.98 on 28 February when Trump launched strikes on Iran.
“Trump says he 'loves the inflation' as US inflation hits 4.2%, a three-year high driven by energy costs from the Iran war.”
'We took out the other night 22 ships late at night, with no lights because they don't have any radar, because we blasted the crap out of it,' Trump said, in a claim that has not been independently verified. 'That's why oil is at $85 a barrel.' He promised rising prices would 'come down like a rock' when the war with Iran was over. Later that day, the US military bombed Iran for the second time in as many days.
The White House pushed back on the numbers. Kush Desai, a White House spokesperson, said in a statement the figures were 'at-expectation' and reinforce that 'despite temporary disruptions as a result of Iran's efforts to subvert the free flow of energy, President Trump's broader economic agenda continues to deliver meaningful results for the American people.'
Inflation remains far below the 9.1% peak under Joe Biden in mid-2022, but it poses a political problem for Trump with midterm elections looming. Voters have ranked the economy as a top concern, and higher inflation raises the likelihood of the Federal Reserve raising interest rates. Trump later told the New York Post his remarks were taken out of context, saying he meant inflation is 'much lower than anticipated' despite the Iran war.