Trump Declares "I Love The Inflation" as US Prices Surge to Three-Year High
US President Donald Trump controversially declared, "I love the inflation," following the release of Bureau of Labor Statistics (BLS) figures for May, which indicated a 4.2% rise in US prices over the preceding 12 months. This represents the fastest rate of increase in three years, up from 3.8% in April, largely driven by escalating energy costs exacerbated by the ongoing US-Israel war in Iran.
Addressing reporters at the White House, Trump asserted that these rising prices would "come down like a rock" once the conflict with Iran concludes. He later clarified to the New York Post that his comments were taken out of context, stating he meant he appreciated that inflation was not higher, given the wartime circumstances.
The US military has continued its strikes on Iran, with exchanges of fire occurring despite a ceasefire agreed in April. This protracted conflict, now over three months old, has significantly impacted global oil supplies, particularly through Iran's effective closure of the Strait of Hormuz, a crucial waterway for approximately a fifth of the world's oil and gas.
Economists are cautioning that even a swift resolution to the Iran war may not see the normal flow of goods through the Strait of Hormuz restored until 2027. Brent crude, the global benchmark, remains considerably above pre-war levels. The average price of a gallon of regular petrol in the US has sharply increased from $2.98 in February to $4.15 currently, according to the AAA.
This sustained inflation poses a significant political challenge for Trump ahead of November's midterm elections, with the economy being a primary concern for voters. The rising Consumer Price Index (CPI), which has now increased for three consecutive months, also places pressure on Kevin Warsh, the new Governor of the Federal Reserve, as he approaches his inaugural interest rate decision. Higher inflation typically prompts the Fed to raise interest rates to curtail spending, thereby limiting price hikes and controlling inflation.
