{"id":492929,"date":"2026-06-14T22:07:27","date_gmt":"2026-06-14T22:07:27","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/492929\/"},"modified":"2026-06-14T22:07:27","modified_gmt":"2026-06-14T22:07:27","slug":"trump-says-i-love-the-inflation-as-rate-rises-to-4-2-amid-iran-war-pressure-inflation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/492929\/","title":{"rendered":"Trump says \u2018I love the inflation\u2019 as rate rises to 4.2% amid Iran war pressure | Inflation"},"content":{"rendered":"

Donald Trump<\/a> said \u201cI love the inflation\u201d after new data showed that inflation<\/a> jumped to an annual rate of 4.2% in May, the third consecutive monthly increase since the start of the Iran war<\/a> and a three-year high.<\/p>\n

Speaking from the White House on Wednesday, the US president said<\/a> that he was not concerned about inflation because of recent developments in the conflict.<\/p>\n

\u201cNo, I love it. The numbers were great,\u201d he said, before adding that the US has been taking out \u201cmillions of barrels of oil\u201d without Iran\u2019s knowledge.<\/p>\n

\u201cWe took out the other night 22 ships late at night, with no lights because they don\u2019t have any radar, because we blasted the crap out of it,\u201d Trump said, making a claim that has not been independently verified by the Guardian. \u201cThat\u2019s why oil is at $85 a barrel.\u201d<\/p>\n

Trump emphasized his control over the situation, saying that since the outset of the war, he understood the impact that it would have on the economy.<\/p>\n

\u201cRemember when I did this, I said \u2026 I hate to do this to you guys, but Iran is going to have a nuclear weapon very soon. We have to go in and attack,\u201d Trump said.<\/p>\n

Data from earlier in the day showed prices had increased sharply over the past several months, rising at an annual rate of 3.3% in March before going up to 3.8% in April. In February, before the conflict began, inflation was at 2.4%.<\/p>\n

Energy prices were once again responsible for the increase in the consumer price index, according to new data from the Bureau of Labor Statistics, accounting for 60% of the overall monthly increases. The national average price for a gallon of gas is $4.15, according to AAA<\/a>, which is slightly lower than where the price was a month ago but still $1 per gallon more than a year ago. Airline fares also increased 26.7% annually, a squeeze travelers may have already noticed before the busy summer season<\/a>.<\/p>\n

graph<\/a><\/p>\n

Other essential everyday expenses, such as food, energy services and clothing, also increased. Stripping out volatile energy and food prices, core CPI increased 2.9%.<\/p>\n

Earlier, the White House said in a statement the newest inflation figures were \u201cat-expectation\u201d and reinforce that \u201cdespite temporary disruptions as a result of Iran\u2019s efforts to subvert the free flow of energy, President Trump\u2019s broader economic agenda continues to deliver meaningful results for the American people\u201d.<\/p>\n

\u201cPrices of prescription drugs, dairy products, cars, as well as both health and auto insurance continue to decline thanks to the Trump administration\u2019s policymaking,\u201d Kush Desai, a White House spokesperson, said in a statement. \u201cThe Administration will continue pushing our affordability agenda to enable Americans to keep more of their hard-earned money.\u201d<\/p>\n

Since the beginning of the US-Israel war with Iran, inflation has hit its highest levels since 2023, though they still remain well below the peaks recorded in 2022, when inflation hit 9%.<\/p>\n

Higher prices have dampened Americans\u2019 expectations of their financial outlook. According to a survey released on Monday from the Federal Reserve Bank of New York, households have become more pessimistic about inflation, the labor market, finding a job and the potential for layoffs. Consumer sentiment has also plummeted to a historic low, according to data from the University of Michigan<\/a>, after falling for three consecutive months.<\/p>\n

The new inflation data puts pressure on officials with the US Federal Reserve<\/a>, who are meeting for the first time next week under the central bank\u2019s new chair, Kevin Warsh. The Fed has voted to maintain interest rates since the end of last year. The central bank has been aiming for a target annualized inflation rate of 2%.<\/p>\n

Warsh said he believed the rates, which stand at 3.5% to 3.75%, should be lowered, aligning himself with Donald Trump<\/a>, who has spent the last year trying to coerce the central bank into lowering rates.<\/p>\n

Even though prices are rising, the president is unlikely to be deterred from calling for rate cuts. On Tuesday, Trump told reporters<\/a> <\/a>that he didn\u2019t think US fuel prices were \u201cvery high, relatively speaking.\u201d<\/p>\n

The Fed typically decreases rates to address high unemployment, at the risk of raising prices. The US job market has remained strong, with employers adding a surprising 172,000 jobs in May while the country\u2019s unemployment rate held steady at 4.3%.<\/p>\n

Goldman Sachs said on Friday<\/a> that it no longer believed that the Fed would cut rates this year, instead predicting that the central bank would keep rates unchanged throughout 2026 and delay any cuts until next year.<\/p>\n

JP Morgan Global Research forecast that rate hikes across global central banks were on the horizon and predicted that the Fed would increase rates by 2027<\/a>.<\/p>\n

Bruce Kasman, chief global economist at JPMorgan Chase, wrote in the April report that recent developments were upending the debate about inflation inertia and the monetary policy path. \u201cThe energy price spike is now raising inflation and generating a sharp squeeze on household purchasing power that could intensify if the Middle East conflict keeps the strait of Hormuz closed.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Donald Trump said \u201cI love the inflation\u201d after new data showed that inflation jumped to an annual rate…\n","protected":false},"author":2,"featured_media":492930,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-492929","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/492929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=492929"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/492929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/492930"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=492929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=492929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=492929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}