US consumer inflation accelerated at its fastest pace in three years in May, driven largely by soaring energy costs linked to escalating tensions involving Iran and disruptions in global oil markets.
According to the US Department of Labor’s Bureau of Labor Statistics (BLS), consumer prices rose 0.5% in May from the previous month, following a 0.6% increase in April. On an annual basis, inflation climbed 4.2%, underscoring persistent price pressures ahead of next week’s US Federal Reserve policy meeting.
Rising energy costs largely fueled the sharp increase. Energy prices increased 3.9% in May after rising 3.8 percent in April, with motorists bearing the brunt of the surge.
Petrol prices jumped 7% during the month and were more than 40% higher than a year earlier, adding to concerns over household spending and the broader economic outlook.
Trump Welcomes Inflation
US President Donald Trump appeared unfazed by the inflation figures, telling reporters on Wednesday that he welcomed the data despite concerns that rising prices could affect Republican prospects ahead of the November midterm elections.
“I love the inflation,” Trump said when asked about the latest consumer price data.
The president linked recent price pressures to efforts to secure global energy supplies, revealing that he had approved a plan to secretly move oil tankers through the Strait of Hormuz amid fears of further disruptions and higher oil prices.
“It was worth it to me,” Trump said, describing the operation as successful.
Expressing confidence that energy prices would eventually retreat, Trump added: “When it’s over, you will see oil drop to where it was before. It’s coming down. It’s going to come down like a rock.”
The inflation data is likely to be closely watched by policymakers as the Federal Reserve weighs its next move on interest rates amid ongoing concerns about economic growth, energy market volatility and persistent price pressures.
