President Donald Trump praised the United States’ latest inflation figures, declaring he "loves the inflation" as the Consumer Price Index rose 4.2% in May from a year earlier – the fastest rate in three years.
The rise, driven by a surge in energy costs following the U.S. Israel‑Iran skirmish, left consumers paying more for gas and groceries. Trump, speaking at the White House, said the spikes were a "great number" but assured that they would subside – or "come down like a rock" – once the conflict ended.
He told reporters that U.S. forces recently struck Iranian oil facilities, taking "millions of barrels" and helping curb oil prices. Trump hinted that petrol prices would revert to the $1.85 per gallon level he saw in a 2026 Iowa visit.
Despite the upbeat tone, the President’s comment was met with criticism. Democratic Leader Chuck Schumer on X warned the President’s disdain for Americans’ cost of living was "boundless." Trump later said his remarks were taken out of context and meant to indicate inflation was "much lower than anticipated".
Use of the June 2026 data is part of Trump’s broader plan to team the country back to growth, a pledge he repeated during his 2024 campaign. Analysts note that the inflation rate, while still below Biden’s 2022 high of 9.1%, could push the Federal Reserve to raise rates in 2027 if the supply jam in the Strait of Hormuz persists.
Economists are split on what the current numbers mean. Some say a 4.2% rise alone is insufficient to trigger higher rates, while others argue the combination of inflation and strong employment will likely make the Fed consider an increase.
The central bank’s upcoming committee meeting will weigh on both markets and politics, as interest rates are expected to remain between 3.5% and 3.75% next month. Trump’s comments could influence the party’s stance on the economy ahead of the upcoming elections.
For more context, see the BBC link showing how energy prices surged from the Iran war, and the related feature on rising pump prices driving inflation.
US inflation jumps to 3.8% as energy costs surge from Iran war
Soaring pump prices drive US inflation to highest level in almost two years
US strikes Iran in response to downing of military helicopter
