I Love the Inflation: Trump Embraces 4.2% Price Surge, Blames Iran War

There are few political reversals as audacious as a president who campaigned on crushing inflation walking into the Oval Office and declaring his love for it. Donald Trump delivered exactly that.

When a reporter asked, "Are you concerned, Mr. President, about the latest inflation number?" Trump replied without hesitation: "No, I love it. The numbers were great. You know what I really love? I love the inflation." He then unveiled what he framed as a classified military revelation: "Do you know we've been taking out millions of barrels of oil? Nobody knows it. You know who doesn't know about it? Iran, until right now. We took out, the other night, 22 ships late at night with no lights because they don't have any radar because we blasted the crap out of it. That's why oil is $85 a barrel." He predicted prices would fall "like a rock" once the war ends.

The data triggering all of this was a CPI print showing inflation at 4.2% annually in May, accelerating from just 2.4% in January , a near-uninterrupted climb over five months. Energy drove the devastation: gasoline surged 40.5% year-on-year, fuel oil climbed 58.9% , and energy alone accounted for more than 60% of the monthly CPI increase , a direct consequence of the Strait of Hormuz closure since late February. At the grocery aisle, tomato prices surged 32% , lettuce jumped 25% , and coffee rose 17.5% .

Real average weekly earnings fell 0.2% in May and 0.7% from a year ago , the steepest annual decline since February 2023. Three-quarters of Americans now say their incomes are not keeping up with inflation, according to a CBS News poll.

The Democratic backlash was instantaneous. Senate Minority Leader Chuck Schumer called the remark contempt "with no bounds." House Minority Leader Hakeem Jeffries said it proved Trump does not care about everyday Americans. Illinois Governor JB Pritzker cut to the bone: "People can't afford to feed their families. Your struggle is a joke to him." House Speaker Mike Johnson attempted a rescue, arguing the remarks were taken "totally out of context" while quietly conceding gas prices remain a "pain point."

The remarks land on the desk of new Federal Reserve Chair Kevin Warsh , who was sworn in just weeks ago in the closest Fed confirmation vote in modern history. Markets, which had earlier priced in rate cuts, have now pivoted sharply to pricing in a rate hike before year's end. The Fed's rate-setting committee meets on June 17 , its first decision under Warsh, and markets will be watching for every signal of just how alarmed policymakers are.

Republicans privately fear the affordability crisis will cost them their slim Congressional majorities in November's midterms.