By Enyichukwu Enemanna
US President Donald Trump on Wednesday said he “loves the inflation” facing the US as prices in May rose at their fastest rate in three years.
Trump said the “numbers were great” when asked about Bureau of Labor Statistics (BLS) source showing prices rose by 4.2% in May from a year earlier.
Analysts say the increase, from 3.8% in April, was largely driven by rising energy costs in the wake of the US Israel war in Iran.
Speaking from the White House, Trump said: “I love it. The numbers were great. You know what? I really love the inflation.”
The US leader further said the US forces have conducted nighttime operations in which tens of ships have removed millions of barrels of oil from Iran, contributing to a slight drop in oil prices.
The global benchmark for oil, Brent crude, is still trading significantly higher than pre-war levels.
Wednesday marked the third month in a row the US Consumer Price Index (CPI) has risen, with households increasingly feeling the strain of the US and Israel’s war in Iran.
Higher inflation raises the likelihood of the US Federal Reserve raising interest rates in a bid to curtail spending.
The last time inflation was higher was in April 2023, when the US was still grappling with the fallout from the energy shock sparked by Russia’s invasion of Ukraine.
Overall energy bills including gas and electricity were almost a quarter higher in May than a year earlier, with petrol responsible for much of the increase.
According to separate figures from motoring group the AAA, the average price of a gallon of regular petrol in the US is currently $4.15, a sharp increase from $2.98 on February 28, when President Donald Trump launched strikes on Iran.
In response to the strikes, Iran has effectively shuttered the crucial Strait of Hormuz waterway, typically responsible for shipping around a fifth of the world’s oil and gas which has resulted in a surge in prices.
