Trump says he 'loves inflation' CPI jumps 4.2% in May
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- Trump said he "loves the inflation" after the BLS reported a 4.2% year‑over‑year CPI increase in May, the fastest pace in three years.
- Bureau of Labor Statistics posted that the CPI rose from 3.8% in April to 4.2% in May, with energy costs climbing due to the US‑Israel war in Iran.
- Trump promised that prices would "come down like a rock" once the Iran war ends and claimed nighttime U.S. operations seized "millions of barrels" of Iranian oil, causing a slight drop in oil prices.
- U.S. military carried out a second strike on Iran on Wednesday night, while Iran closed the Strait of Hormuz, a route that moves about 20% of global oil.
- Trump pointed to a 2026 Iowa visit where gasoline cost $1.85 per gallon and vowed to restore those levels, even as Brent crude remains above pre‑war prices.
- Economists warned that normal oil flows through the Strait of Hormuz may not return until 2027 and that persistent inflation could force the Fed to raise rates above the current 3.5‑3.75% range.
Why it matters: Trump’s upbeat spin on a 4.2% CPI surge heightens political pressure ahead of the midterms, while the inflation uptick revives expectations that the Federal Reserve could lift rates, increasing borrowing costs for consumers and businesses and potentially reshaping fiscal and campaign narratives.
