U.S. Inflation Jumps as Trump Says He 'Likes It'

Donald Trump: "We will attack Iran with force, today." 10.6.2026 / Reuters

The U.S. consumer price index rose sharply by 4.2% in May compared with the same period a year earlier, according to data from the U.S. Bureau of Labor Statistics. That marks an acceleration to the highest inflation rate in three years, after the index stood at 3.8% in April. The current spike is driven mainly by a sharp rise in energy prices, recorded following the war in Iran. This is the third consecutive month in which the U.S. consumer price index has risen, and households in the country are increasingly feeling the burden of the fighting.

Despite the troubling data, U.S. President Donald Trump chose to respond in a way that ignited a political storm. "I like it. The numbers were great. You know what I really like? I like inflation," Trump said at the White House. Later in the day, the U.S. military began bombing in Iran, and the president promised that rising prices would "fall like a stone" once the war ended. Trump later tried to calm the situation, and in an interview with the New York Post claimed his remarks had been taken out of context, and that he meant inflation was actually "much lower than expected" despite the broader conflict.

The president's statements drew sharp criticism from his political rivals, who attacked what appeared to be an embrace of higher prices. Senate Democratic Majority Leader Chuck Schumer posted on X that "his contempt for you knows no bounds." The criticism adds to the barrage Trump faced last month, after he declared that the financial situation of American citizens did not affect him "even a little," as the goal of ensuring that Iran does not develop nuclear weapons remained on the table.

This is a significant political problem for Trump, especially given that voters rank the economy as their top concern heading into the midterm elections in November, even though current inflation is still far below the 9.1% peak recorded in mid-2022 under his predecessor, Joe Biden.

Meanwhile, pressure on the ground continues to rise. In response to the attacks, Iran has effectively blocked the Strait of Hormuz, a critical shipping route through which about one-fifth of the world's oil and gas supply passes. The squeeze on supply led to U.S. household energy bills, including gas and electricity, being almost a quarter higher in May than a year earlier. According to AAA, the price of a gallon of regular gasoline in the U.S. jumped to $4.15, compared with just $2.98 before the fighting began.

Despite the ceasefire that took effect in April, the exchange of fire continued this week as well, and the U.S. military carried out another wave of strikes in Iran.

Beyond energy, BLS data also point to broad-based price increases in airline tickets, medical and personal care, leisure, and communications. Economists are already warning that even if the war ends soon, restoring normal goods flow through the Strait of Hormuz could take until 2027.

The data also pose a heavy challenge for Kevin Warsh, the new chairman of the Federal Reserve, ahead of his first interest rate decision next week. The rise in the consumer price index increases the likelihood that the central bank will have to raise rates to rein in spending and bring inflation under control, which is now far from the Fed's long-term target of 2%. On the eve of Warsh's appointment, Trump repeatedly pressured the previous chairman, Jerome Powell, to cut interest rates.