Trump says ‘I love the inflation’ as annual rate hits 4.2% in May
13 reported2 unconfirmed
According to a single-source report from The Guardian, President Donald Trump said "I love the inflation" after new data showed the annual inflation rate rose to 4.2% in May, the third consecutive monthly increase since the start of the US-Israel war with Iran and a three-year high. Speaking from the White House on Wednesday, Trump said he was not concerned about inflation because of recent developments in the conflict, referencing the removal of "millions of barrels of oil" without Iran's knowledge and claiming 22 ships were taken out. The Guardian noted that this claim has not been independently verified. Data from the Bureau of Labor Statistics showed energy prices accounted for 60% of the overall monthly increases in the consumer price index, with the national average gas price at $4.15 per gallon. The White House issued a statement calling the figures "at-expectation" and said President Trump's economic agenda continues to deliver results despite temporary disruptions from Iran. The new inflation data puts pressure on the Federal Reserve, which has maintained interest rates since the end of last year and is meeting next week under new chair Kevin Warsh.
What’s reported
Inflation rose to an annual rate of 4.2% in May, a three-year high.
This is the third consecutive monthly increase since the start of the Iran war.
Trump said from the White House: "No, I love it. The numbers were great."
Trump claimed the US took out "22 ships late at night" without Iran's knowledge; The Guardian stated this claim has not been independently verified.
Energy prices accounted for 60% of the overall monthly CPI increases.
National average gas price is $4.15 per gallon, $1 more than a year ago.
Airline fares increased 26.7% annually.
Core CPI (excluding energy and food) increased 2.9%.
The Federal Reserve is meeting next week under new chair Kevin Warsh.
The Fed's current interest rate is 3.5% to 3.75%.
Goldman Sachs predicted the Fed will not cut rates in 2026.
JP Morgan Global Research forecast rate hikes by 2027.
Consumer sentiment has fallen to a historic low, according to University of Michigan data.
Open questions
The specific details of the military actions Trump referenced regarding the 22 ships have not been independently verified.
Whether the Federal Reserve will cut or raise rates remains uncertain, with Goldman Sachs and JP Morgan offering differing forecasts.
Key figures
Donald Trump, US president
Kevin Warsh, new chair of the Federal Reserve
Kush Desai, White House spokesperson
Bruce Kasman, chief global economist at JPMorgan Chase
Sources: The Guardian
