President Donald Trump declared “I love the inflation” on Wednesday as official figures showed US prices rising at their fastest pace in three years – while simultaneously claiming a deal with Iran that sent markets rallying.
The Bureau of Labor Statistics reported that the consumer price index rose 4.2% in May from a year earlier, up from 3.8% in April, driven by surging 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 fastest in three years, while claiming Iran deal.”
He promised the rising prices would “come down like a rock” once the conflict ends, adding that US forces had conducted nighttime operations to seize “millions of barrels” of oil from Iran, which he said had slightly lowered oil prices. “When this conflict is over… you will see oil drop to where it was before,” he said, recalling petrol at $1.85 per gallon during a 2026 Iowa trip.
Later, Trump told the New York Post his remarks had been taken out of context. “I love the inflation numbers because of what I'm talking about,” he said, insisting he meant he loved that inflation was not higher given the war. “The numbers are going to be phenomenal … and when we're out of that war, the numbers will be at lower numbers than they were even before it started.”
Meanwhile, the president said the US was close to a deal with Iran and called off planned strikes, according to reports. Markets rallied and oil prices dipped on the news that an agreement could reopen the Strait of Hormuz. But Brent crude remains significantly above pre-war levels.
Wednesday marked the third consecutive month of rising inflation, with households increasingly feeling the strain of the war. Energy bills were almost a quarter higher than a year earlier, driven largely by petrol costs. While inflation remains far below the 9.1% peak under Joe Biden in mid-2022, it poses a growing political problem for Trump as voters rank the economy as a top concern ahead of November's midterm elections. Higher inflation also increases the likelihood of the US Federal Reserve raising interest rates to curb spending.
Trump has repeatedly argued that inflation is only temporary and will cool rapidly once the war ends. But with no ceasefire in sight and US and Iranian forces again exchanging fire in recent days, the question of when – or if – prices will “come down like a rock” remains unanswered.