US President Donald Trump has stated he 'loves inflation' after the Bureau of Labor Statistics reported that consumer prices rose 4.2% in May from a year earlier, the fastest pace in three years. The increase, up from 3.8% in April, was driven by rising energy costs amid the US-Israel war in Iran.

Speaking at the White House, Trump said: 'I love it. The numbers were great. You know what I really love? I love the inflation.' However, he promised that prices would 'come down like a rock' once the war with Iran was over. Later that day, the US military bombed Iran.

Reacting to the inflation figures, the president claimed US forces had conducted nighttime operations to seize 'millions of barrels' of oil from Iran, which he said contributed to a slight drop in oil prices. 'When this conflict is over… you will see oil drop to where it was before,' he told reporters.

Trump pointed to a trip to Iowa in early 2026, saying he saw petrol selling for $1.85 per gallon, adding that 'we will be back at those levels very soon'. However, the global benchmark Brent crude remains significantly higher than pre-war levels.

Later, Trump told the New York Post his remarks were taken out of context and he meant inflation is 'much lower than anticipated', despite the Iran war. Overall energy bills, including gas and electricity, were almost a quarter higher in May than a year earlier.

Economists have warned that even with a swift resolution to the Iran war, it could take until 2027 for normal goods flow through the Strait of Hormuz to be restored. The Fed's long-term inflation target is 2%.

Source: www.bbc.com