Key facts
- President Trump stated he "loves the inflation."
- He linked inflation to the Iran war and a secret oil operation.
- The consumer price index rose 4.2% year-over-year, with a 0.5% monthly increase in May.
- Trump claimed a secret military operation had moved 100 million barrels of oil through the Strait of Hormuz.
- U.S. crude oil futures climbed approximately 4% on Wednesday.
President Donald Trump expressed a surprising affinity for inflation, stating "I love the inflation" in response to a new report showing the consumer price index had jumped 4.2% over the past year, with a 0.5% monthly increase in May. Trump linked the rising prices to the Iran war and claimed relief was imminent due to a secret military operation that had allegedly moved 100 million barrels of oil through the Strait of Hormuz.
This stance comes as voters ahead of the November elections have ranked the economy as a top concern, giving Trump low marks on affordability. Democrats, including Senate Leader Chuck Schumer and House Leader Hakeem Jeffries, quickly criticized Trump's comments on social media, with Representative Emilia Sykes pressing Energy Secretary Chris Wright on the issue during a hearing.
Trump claimed the operation had caused oil prices to fall below $90 a barrel, though data to immediately corroborate the scale of the shipments or the U.S. military's role was unavailable. The White House, meanwhile, pointed to monthly decreases in some expenses like new vehicles and prescription drugs, while acknowledging that overall inflation relative to wage growth indicated a decline in spending power. White House spokesman Kush Desai stated the administration expects oil and gas prices to fall once the Iran situation is resolved.
Despite Trump's claims, U.S. crude oil futures climbed roughly 4% on Wednesday, closing at nearly $92 a barrel.