Trump touts inflation data as prices hit fastest pace since 2023

Higher energy costs pushed U.S. consumer prices up at the fastest annual pace since April 2023, squeezing households already wary of food, rent and fuel bills. The Bureau of Labor Statistics said the Consumer Price Index rose 0.5% in May from April and 4.2% over the previous 12 months, with energy prices up 3.9% and responsible for more than 60% of the monthly increase. Shelter also climbed 0.3%, keeping upward pressure on one of the biggest components of family budgets.

Donald Trump moved quickly to recast the data as a sign of resilience rather than distress. Speaking in the Oval Office, he said, “I love the inflation,” later explaining that he meant he loved that inflation was not higher. He called the numbers “great” and said he expected inflation to “come down like a rock” once the war with Iran ended, tying the price spike directly to the conflict’s effect on oil and shipping markets.

That message underscored how the administration is trying to manage the political fallout from a cost-of-living problem that remains front and center for voters. Reuters reported that Trump also said he had authorized a secret plan to move oil tankers through the Strait of Hormuz because he worried higher costs would worsen inflation. He said the operation was “worth it” to him and added that he could not let Iran have a nuclear weapon, making clear that the White House is weighing inflation against broader Middle East risks.

The timing is politically awkward. The inflation data landed with the November 2026 midterm elections approaching, when Republicans are already under pressure over affordability and the price of everyday essentials. Public polling cited in coverage showed fewer than one in four Americans approve of Trump’s handling of cost-of-living issues, a warning sign that upbeat language from the White House may not match voter sentiment.

The numbers could also shape the Federal Reserve’s next move. Analysts said the May increase may give the central bank more reason to keep interest rates unchanged, or even tighten policy if price pressures persist. For households, the immediate takeaway is less abstract: gasoline and energy are once again doing the damage, and until that eases, rent and shelter costs will keep inflation from looking tame.