President is commenting on the most recent figures, which indicate that inflation increased to 4.2% in May. Trump stated, “I love the inflation,” and predicted that oil and gas prices will decline once the conflict with concludes.
“No, I love it. The numbers were great. You know what I really love? I love the inflation,” Trump said while speaking to the press in the Oval Office.
“You know what I really love? I love the inflation. You know why?” Trump continued. “Because as soon as this war is over, you know I can say it now … you know we’ve been taking out millions of barrels of oil.”
“Nobody knows it. You know who doesn’t know about it? Iran, until right now,” the said.
“We took out the other night, 22 ships, late at night, with no lights, because they don’t have any radar, because we blasted the crap out of it,” the President said. “That’s why oil is at $85 a barrel.”
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US inflation surges to 4.2% in May, highest level since 2023
In May, inflation in the United States increased, with consumer prices rising by 4.2% compared to the previous year, which represents the highest annual inflation rate observed in over three years. This rise is attributed to surging energy costs that have intensified price pressures throughout the economy, as reported by the US Bureau of Labor Statistics on Wednesday.
The Consumer Price Index (CPI), which serves as a comprehensive indicator of the costs associated with goods and services, saw a 0.5% increase on a seasonally adjusted basis for the month, resulting in an annual inflation rate of 4.2%. Both of these figures aligned with the expectations of economists, as indicated by a survey conducted by Dow Jones.
The most recent reading marks the first occasion that inflation has exceeded the 4% threshold since April 2023, following a recorded increase of 3.8% in April. Analysts have attributed a significant portion of this acceleration to rising energy prices, which have escalated due to ongoing conflicts involving Iran and increasing worries about potential disruptions to global oil supplies.
However, the underlying inflationary pressures have remained relatively stable. The Core Consumer Price Index (CPI), which omits the more volatile categories of food and energy, increased by 0.2% from April and by 2.9% compared to the same period last year, as reported by the Bureau of Labor Statistics. Although the annual core inflation rate aligned with forecasts, the monthly rise fell short of the anticipated 0.3% and represented a decrease from the 0.4% increase observed in April.
This inflation report emerges at a pivotal moment for financial markets and policymakers, as the US Federal Reserve deliberates its forthcoming interest rate decision.
