Trump says he loves the inflation as US consumer prices rise at fastest pace in three years
US consumer prices rose at their fastest annual pace in three years in May, the Bureau of Labor Statistics said, as President Donald Trump told reporters he loves the inflation. Officials cited the US-Israel war in Iran for pushing energy and food costs higher.
The US Bureau of Labor Statistics reported that the consumer price index rose 4.1% year-on-year in May. That was the fastest reading since February 2023 and ahead of the 3.7% consensus forecast for the month. Core inflation held at 3.6% on the year.
President Donald Trump told reporters at the White House that he loves the inflation and repeated his call for the Federal Reserve to cut interest rates. White House economic adviser Kevin Hassett said the BLS data reflected the impact on energy prices of the ongoing military operation in Iran. Crude oil prices had moved above $85 a barrel in mid-April.
BBC economics correspondent Faisal Islam wrote that the print complicates the rate path for Fed Chair Kevin Warsh. Goldman Sachs economists said they expect inflation to stay above an annual 4% over the next three months. The dollar index eased after the release and Treasury yields rose. (Not investment advice.)
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