Business

Consumer Prices Rose 4.2% in May — the Highest Since 2023 — and Trump Called It a Good Thing

By Mike Harper · June 13, 2026

The Bureau of Labor Statistics reported Wednesday that consumer prices rose 4.2% year-over-year in May — the highest annual inflation reading in more than three years. Gas, groceries, and housing all contributed to the increase. The Iran war’s effect on energy prices remains the primary accelerant.

Trump’s response was not what most economists expected.

“I love the inflation.”

He told reporters at a White House press availability that rising prices reflected a strong economy and that the inflation would resolve itself once the Iran deal was completed. He said the 4.2% figure was “not that bad” and that previous administrations had dealt with worse.

The Federal Reserve is unlikely to share that assessment. The central bank has held interest rates steady since January, waiting for inflation to cool before considering cuts. A 4.2% annual rate — driven significantly by energy prices that have risen more than 50% since the war began on February 28 — moves in the opposite direction of what the Fed needs to see before easing monetary policy.

For households, the 4.2% figure translates to specific costs that are not abstract. Gas nationally is $4.55 per gallon. Tomatoes are up 50% year-over-year. Ground beef is $6.70 per pound. Grocery prices overall rose 0.7% in a single month in April — the sharpest one-month increase in nearly four years. The May CPI data confirms the trend is accelerating rather than moderating.

The “I love the inflation” quote drew immediate reactions from both parties. Democratic campaign committees began running digital ads with the quote within hours. Republican economic advisors privately expressed frustration, with one telling CNBC the comment was “not helpful” heading into a midterm cycle where the cost of living is the top voter concern.

Trump won the 2024 election in significant part because voters trusted him more than Biden to manage prices. His approval rating on the cost of living is now 19% — the lowest score on any policy area in the most recent Marquette poll. Telling those voters he loves the inflation is a bet that they will hear confidence rather than indifference.

That bet will be tested in November.