Trump calls high US inflation "great" – energy prices rise significantly

When asked by a journalist whether the rise in the inflation rate worried him, Trump said verbatim: "The numbers were great. I love inflation." He did not explain why he views higher inflation as positive.

Trump merely stated that he expected inflation to come back down, without elaborating on this assessment. He also did not address why he considers it a good thing that Americans have to pay noticeably more for everyday food staples and gasoline.

Energy prices as the main driver

Energy products in particular became significantly more expensive: according to the Department of Labor's data, US energy prices in May were 23.5 percent above the previous year's level. Gasoline prices rose by around 40 percent year-on-year.

The background to these price jumps, according to the underlying APA reporting, is the Iran war and blockades in the Strait of Hormuz, which have significantly curtailed the global energy supply. As a result, companies currently have to spend considerably more money on oil, gas, and fertilizer.

EIA raises oil price forecasts significantly

The US Energy Information Administration (EIA) has consequently revised its price forecasts for Brent crude significantly upward. For the current year, the EIA now expects an average price of 95 US dollars per barrel (159 liters); in February, it had still assumed 58 US dollars per barrel.

The outlook for 2027 also remains well above the February forecast, at 79 US dollars per barrel compared to 53 US dollars. The agency thus expects a persistently higher price level on the global oil market in the medium term.

Economists see the data as evidence that price pressure in the US is broad-based and not limited to individual sectors. At the same time, pressure is mounting on the Federal Reserve, whose mandate is price stability and which pursues an inflation target of two percent.

Pressure on the US Federal Reserve

Trump's statement comes at a time when the Federal Reserve is deliberating on the future course of monetary policy. Should inflation remain stubbornly above the target, interest rate cuts – on which parts of the US economy and financial markets are counting – could be postponed further.

Meanwhile, many US households are feeling the effects directly: at the gas pumps, in the supermarket, and on energy bills, the expenditures of many families have risen noticeably. The discrepancy between Trump's positive rhetoric and the everyday burden on consumers is shaping the political debate in the country.

Trump himself has so far not presented any concrete plan for curbing inflation in the short term. His reference to a future easing of inflation was offered without substantive justification, further amplifying criticism from the opposition and economic experts.