Trump Says He ‘Loves the Inflation’ as U.S. Prices Rise at Fastest Rate in Three Years
By Shahnoor Saqib
President Donald Trump sparked fresh controversy Wednesday after declaring that he “loves the inflation” while responding to new government data showing U.S. consumer prices have climbed to their highest level in three years.
The remarks came shortly after the Labor Department reported that annual inflation rose to 4.2% in May, the fastest pace since 2023. Economists say surging gasoline and energy costs linked to the escalating Iran conflict were the primary drivers behind the increase.
Asked whether rising prices could hurt Republicans ahead of the November midterm elections, Trump responded: “I love the inflation.” He then argued that energy prices would eventually collapse once the conflict with Iran ends, saying oil prices would “come down like a rock.”
Trump defended his administration’s handling of the crisis, claiming the White House approved secret measures to move oil shipments through the Strait of Hormuz in an effort to reduce pressure on global energy markets. He insisted the economic costs were justified by national security concerns involving Iran.
The inflation report paints a more difficult picture for American households. Government data showed prices rose 0.5% in May alone, while annual inflation accelerated from 3.8% to 4.2%. Energy costs recorded some of the largest increases, with gasoline prices rising sharply amid disruptions linked to the Middle East conflict.
Economists warn that inflation is now growing faster than wages for a second consecutive month, meaning many Americans are effectively losing purchasing power despite continued job growth. Higher fuel, transportation and utility costs are placing increasing pressure on household budgets.
The surge is also creating a challenge for the Federal Reserve. Markets had hoped interest-rate cuts could arrive later this year, but the latest inflation figures may force policymakers to keep borrowing costs elevated for longer. Several analysts now believe rates could remain unchanged well into 2027 if energy prices stay high.
Political pressure is mounting as voters increasingly cite inflation as one of their top concerns. While Trump argues that ending the Iran conflict will quickly ease prices, economists caution that prolonged instability in the Strait of Hormuz could keep oil markets under pressure and extend inflationary risks across the broader economy.