US inflation spikes to 3-year high, Trump says ‘I love it’

The US president insists price pressures will ease when the Iran war ends, even as he vows more strikes

US consumer inflation surged to a three-year high in May, according to official data released on Wednesday, as increased energy prices rippled through the world’s largest economy.

He said the inflation data was good because it showed energy prices were a huge driver of rising costs – the government said they accounted for more than 60 per cent of the monthly increase – and he suggested inflation would ease “as soon as this war is over”.

However, the US launched more air strikes against Iran on Wednesday, and Trump said more were coming, as Tehran fired back at countries in the region.

The consumer price index (CPI) rose 4.2 per cent year on year, up from April’s 3.8 per cent figure, the US Bureau of Labour Statistics said. It was the highest reading since April 2023, according to official data, but in line with analyst expectations.

The US-Israel war against Iran, launched in late February, has sent energy prices soaring after Tehran retaliated by virtually closing the vital Strait of Hormuz, through which roughly a fifth of global oil and gas normally pass.