Trump says 'I love the inflation' as US prices rise at fastest rate in three years

President Donald Trump has said "I love the inflation" after official figures showed that US prices rose last month at their fastest rate for three years.

Bureau of Labor Statistics (BLS) figures for May showed that prices had gone up by 4.2% over the previous 12 months. The rate of increase, from 3.8% in April, was driven by rising energy costs in the wake of the US-Israel war in Iran.

"I love it. The numbers were great. You know what I really love? I love the inflation," Trump said at the White House.

But he promised the rising prices would "come down like a rock" when the war with Iran was over. The US and Iran have again exchanged fire in recent days.

Trump later told the New York Post that his remarks had been taken out of context, saying he had meant that he actually loved the fact that inflation was not higher.

"I love the inflation numbers because of what I'm talking about," Trump told The Post. "The numbers are going to be phenomenal because what's showing is that despite the fact that we're in a war, the numbers are much lower than anticipated, and when we're out of that war, the numbers will be at lower numbers than they were even before it started."

"When this conflict is over… you will see oil drop to where it was before," he told reporters in the White House.

The president pointed to a trip to Iowa in early 2026, saying he saw petrol selling for $1.85 per gallon, adding that "we will be back at those levels very soon".

The global benchmark for oil, Brent crude, is still trading significantly higher than pre-war levels.

Wednesday marked the third month in a row the US Consumer Price Index (CPI) has risen, with households increasingly feeling the strain of the US and Israel's war in Iran.

Trump has previously said that inflation is only heating up temporarily, and he expects it to rapidly cool once the war ends.

Inflation is still far below the peak of 9.1% under his predecessor Joe Biden in mid-2022.

Still, it poses a political problem for Trump, given that voters have ranked the economy as a top concern ahead of November's midterm elections.

Higher inflation raises the likelihood of the US Federal Reserve raising interest rates in a bid to curtail spending.

Overall energy bills including gas and electricity were almost a quarter higher in May than a year earlier, with petrol responsible for much of the increase.

According to separate figures from motoring group the AAA, the average price of a gallon of regular petrol in the US is currently $4.15, a sharp increase from $2.98 on February 28, when Trump launched strikes on Iran.