What Trump said about inflation that nobody saw coming

Trump's inflation comments in the Oval Office framed May's 4.2% rise as a favorable development amid war tensions. The Bureau of Labor Statistics reported that consumer prices rose 4.2% year over year, up from 3.8% in April, marking the fastest pace in three years. Energy costs led the move, with energy bills nearly 25% higher than a year earlier and regular gasoline averaging about $4.13 per gallon. Other categories such as airfares, personal care, medical care, recreation and communications also climbed. The data also highlighted broader inflationary pressures across households. Trump later said he was misread, claiming he meant inflation would not have risen further given wartime conditions. The inflation surge has weighed on households, with tariffs and the Iran conflict cited by the JEC as costing the typical American more than $3,100 since 2025. Wage growth slowed to 3.4% year over year, trailing inflation, and the savings rate dipped to a multi-year low. Economists warn that even if inflation stabilizes, prices could remain elevated for years, complicating policy normalization, increasing political stakes for the 2026 midterms.