Inflation in the United States accelerated in May to 4.2% on an annual basis, the highest level in the past three years, driven by the rising cost of energy and tensions in the Middle East.
However, the reaction of American President Donald Trump sparked controversy. When asked in the Oval Office if he is concerned about the rising inflation, Trump dismissed the concerns and claimed that the economic data is „excellent.”
"No, I like it. The numbers have been excellent. You know what I really like? I like inflation," stated the White House leader.
Trump asserted that inflation "will drop like a rock" after the conclusion of the conflict between the USA and Iran, linking price developments to the situation in the oil market.
The American President also made a series of surprising statements about oil transportations through the Strait of Hormuz, claiming that Washington secretly facilitated the passage of oil tankers through the region. "We've taken millions of barrels of oil. Nobody knows this. You know who doesn't know? Iran, until now," Trump said.
According to him, these operations helped maintain the price of oil around $85 per barrel.
Energy Pushes Inflation Above 4%
Data released on Wednesday by the US Bureau of Labor Statistics shows that the Consumer Price Index (CPI) increased by 0.5% in May compared to April, and the annual inflation rate rose from 3.8% to 4.2%.
It is the first time since April 2023 that inflation in the USA has exceeded the 4% threshold.
The main driver of price hikes was energy. Prices in this sector rose by 3.9% in a single month and by 23.5% compared to the same period last year, amid the conflict between the United States and Iran and disruptions in the oil market.
On the other hand, core inflation, which excludes food and energy, remained at a more moderate level of 2.9% on an annual basis.
Shortly after the President's statements, US Energy Secretary Chris Wright stated in Congress that he has no knowledge of alleged operations through which millions of barrels of oil were "taken" from Iran.
Democrats: Americans Can No Longer Afford to Feed Their Families
Trump's comments were immediately criticized by the Democratic opposition. Governor of Illinois, JB Pritzker, wrote on the X network that "people can no longer afford to feed their families, and for him, their difficulties are a joke."
The theme of inflation and the cost of living remains one of the main concerns of American voters and is expected to play a significant role in this fall's election campaign.