U.S. inflation climbed to its highest level in three years in May as the conflict with Iran continued to disrupt energy markets and push up household costs.
Figures from the Bureau of Labor Statistics showed consumer prices rising by 4.2% from a year earlier, accelerating from 3.8% in April. The increase marked the third consecutive month of higher inflation, with energy bills, petrol prices, and transport costs placing greater pressure on American households.
President Donald Trump faced criticism after appearing to welcome the figures during remarks at the White House.
“I love it. The numbers were great. You know what I really love? I love the inflation,” Trump said.
He later told the New York Post that his comments had been misunderstood and that he was referring to inflation being “much lower than anticipated” despite the war. Trump has argued that the rise in prices is temporary and said inflation would “come down like a rock” once the conflict ends.
The president also claimed that U.S. forces had secured “millions of barrels” of Iranian oil during overnight operations, helping to ease pressure on crude prices.
“When this conflict is over, you will see oil drop to where it was before,” he told reporters.
Petrol prices have nevertheless risen sharply since the U.S. launched strikes on Iran in late February. Iran has restricted traffic through the Strait of Hormuz, a crucial shipping route for global energy supplies, intensifying concerns about the impact of the conflict on oil markets.
The latest inflation data also showed higher prices for plane tickets, medical care, personal care, recreation, and communication services. Although inflation remains below the 9.1% peak recorded in 2022, it is still well above the Federal Reserve’s long-term target of 2%.
The figures could make it harder for the central bank to consider cutting interest rates in the near term. Policymakers may instead keep borrowing costs elevated if they believe higher energy prices risk spreading across the wider economy.
The issue is also likely to remain politically sensitive ahead of November’s midterm elections. Senate Democratic Leader Chuck Schumer criticised Trump’s remarks on X, writing, “His contempt for you knows no bounds.”