President Donald Trump said he loves inflation Wednesday in response to a question about the latest federal report showing inflation climbed past 4 percent for the first time in three years.
“I love it; the numbers were great,” Trump said. “You know what I really love? I love the inflation.”
The bizarre moment punctuated the administration’s minimization of the country’s affordability crisis, a crisis that is getting worse, according to Wednesday’s Consumer Price Index.
The index revealed the inflation rate rose 4.2 percent year-on-year in May, driven by the Iran war’s impact on energy costs. Soaring prices have hammered working Americans recently, including at the gas pump, grocery store and in other consumer goods.
Inflation was at 2.4 percent before the war started February 28.
Some everyday items saw sizable increases in May, according to the Consumer Price Index, including energy and a number of grocery staples.
Gas prices rose 7 percent month on month - no relief for drivers who’ve seen prices at the pump soar more than 50 percent since the war started. The average gallon of gas in the U.S. now costs $4.15, according to AAA.
In the grocery store aisles, the prices of fresh biscuits, rolls and muffins were up 4.7 percent month on month, along with eggs (4 percent) and flour (2.6 percent).
Overall, food costs rose a modest 0.5 percent compared to April, and several categories ticked up less than that, including cereal and cookies. Prices fell for several staples, including meat, poultry fish and eggs (-0.2); bread (-0.7 percent); rice (-1.1 percent) and dairy products (-0.6 percent).
While there were some bright spots in Wednesday’s report, it may not be enough to lift consumer sentiment, which fell to an all-time low in April, according to the University of Michigan.
Shoppers are facing prices that are still much higher than they were a year ago, with double-digit increases for tomatoes (32 percent), lettuce (24.0 percent), instant coffee (24 percent) and beef and veal (12.9 percent).
Inflation had been cooling before President Donald Trump imposed sweeping tariffs in April 2025, which lifted the costs of many goods. Prices have since surged after the Iran war made oil and gas more expensive, making affordability a key political issue that Trump is losing. Some 63 percent of Americans disapprove of how Trump is handling the economy, according to a The Economist/YouGov poll published Tuesday.
Looking ahead, there may not be much relief at the gas station or grocery aisle. The United States launched a fresh round of attacks on Iran Tuesday night, with Trump saying Wednesday on Truth Social the Iranians have “taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!”
Oil prices jumped around $3 a barrel in the hours following the post, pushing them past $91 after they dropped below $87 on Tuesday.
The main question now is whether inflation will fade if the war ends and oil and gas prices fall, or will it persist even after the war.
Some economists worry that prices are still elevated in areas that should be unaffected by gas costs, such as dental care, motor vehicle repair, and other services. At the same time, wages are rising only modestly, which should reduce pressure on firms to raise prices further.
With additional reporting from The Associated Press
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