Trump embraces inflation surge as war costs hit American wallets

Trump embraces inflation surge as war costs hit American wallets, citing May data that show a 4.2% annual inflation rate—the highest since April 2023. The increase is energy-driven, with energy prices rising 3.9% in May and accounting for more than 60% of the overall CPI uptick; gasoline prices surged 7% month over month and about 40.5% from a year earlier, lifting the national average for regular gas to $4.15 per gallon. Core CPI rose 2.9% year over year, with a modest 0.2% monthly gain, reflecting some remaining resilience outside energy. Airline fares climbed 26.7% in the past year, while shelter and food costs also rose. Markets expect the Fed to hold rates at the June 17 meeting, though the energy shock adds pressure on inflation. Economists warn that sustained energy-driven gains will keep upward pressure on prices, even as core inflation runs cooler. The president’s upbeat framing contrasts with economists’ concerns about affordability and wage pressures, and his assertion that Iran action explains the inflation remains unverified. The coming months will test how long the energy spike lasts and whether the Fed reconsiders its rate trajectory as growth signals evolve.