I love inflation: Donald Trump

A comment by President Donald Trump has sparked fresh controversy after inflation in the United States hit its highest level in three years. After the latest inflation data was released, he said, “I love inflation,” which caused a wide reaction in political circles.
The British news agency BBC reported this information on Thursday (June 11). According to data released by the US Bureau of Labor Statistics (BLS), the US Consumer Price Index (CPI) increased by 4.2 percent in May compared to a year earlier. The rate was 3.8 percent in April.
Speaking to reporters at the White House, US President Donald Trump said, “These numbers are extraordinary. I love inflation.” However, he later claimed that his comment was taken out of context.
In an interview with the New York Post, Trump said that he actually meant that inflation was lower than expected despite the impact of the Iran war. The end of the ongoing conflict with Iran will bring oil prices down quickly, which will bring inflation under control. In addition, the US military campaign and the improvement in the energy supply situation have already started to have a positive impact on the oil market.
However, the real picture is different. The price of Brent crude, the main global market index, is still significantly higher than before the war. In addition, Iranian actions have also put pressure on global energy supplies, disrupting navigation in the crucial Strait of Hormuz.
As a result, inflation in the United States has increased for the third consecutive month. Not only fuel, but also airfare, medical expenses, personal services, entertainment and communication costs have increased. The current inflation rate is still much lower than the record 9.1 percent set in 2022 during the term of former President Joe Biden. However, it is creating political pressure for the Trump administration, which is campaigning on economic issues.
In this regard, Stephen Brown, North America chief economist at Capital Economics, said that the May data alone is not a strong enough signal to raise interest rates. However, Isaac Stell, investment manager at Wealth Club, believes that raising interest rates may be the most logical course of action, given recent employment data and inflation trends. Democratic leaders have strongly criticized Trump’s comments. Senate Democratic leader Chuck Schumer wrote on social media that his contempt for ordinary people knows no bounds.