Trump Said 'I Love the Inflation' as Prices Hit a 3-Year High. Here's What That Means for Your Family.

"I love it. The numbers were great. You know what I really love? I love the inflation." That was President Trump's reaction on Wednesday, standing in the Oval Office, moments after the government reported that inflation climbed to 4.2% in May — the highest annual rate since April 2023 and the third consecutive monthly acceleration. For the roughly two-thirds of Americans who say inflation is a "very big problem," his enthusiasm landed differently.

Trump attributed the surge entirely to the ongoing war with Iran, claiming that energy costs driven by the closure of the Strait of Hormuz were the sole culprit. He predicted prices would "come down like a rock" once the conflict ends. When pushback came, Trump told reporters he had been misunderstood: "I love the inflation numbers because of what I'm talking about," he said, arguing the rate was lower than anticipated. He offered no separate timeline for when relief would arrive.

The data he called "great" tells a different story in household budgets. Gasoline prices jumped 40.5% year over year and accounted for more than 60 percent of May's overall price increase. The Strait of Hormuz closure sent total energy costs up 23.5 percent annually. Groceries were not spared: tomato prices surged 32 percent, lettuce climbed nearly 25 percent, and coffee rose 17.5 percent.

The energy shock has been compounded by tariffs. A Federal Reserve Bank of Dallas study published last month confirmed that Trump's tariffs have reached full pass-through to consumers — companies have stopped absorbing costs and shifted them entirely to buyers. Researchers found that core inflation would have been 0.8 percentage points lower in March without tariffs. Analysts at the Tax Foundation put the total tariff burden at roughly $1,000 per American household this year.

Wages have not kept pace. Average hourly earnings grew 3.6 percent over the past year — healthy in normal times, but falling short of 4%-plus inflation. Pew Research found that real wages fell between 1 and 3.5 percent over the five years ending in December 2025, regardless of which price index was used. Joseph Brusuelas, chief economist at RSM, projected that real hourly earnings would be "flat to negative for April and definitely negative in May."

The University of Michigan's consumer sentiment index fell to 49.8 in April, the lowest reading in the survey's 74-year history. Three of the four all-time low readings have come in the past nine months. Pew found 66 percent of Americans now call inflation a "very big problem," up from 63 percent the year before. Federal Reserve researchers described the economy in "K-shaped" terms: households earning $150,000 or more show few signs of cutbacks, while lower-income families have pulled back sharply, including on gasoline. "Americans are literally getting squeezed now," said Heather Long, chief economist at Navy Federal Credit Union. "It's not just a vibe, it's a financial reality."

The reaction to Trump's remarks was swift. Senate Minority Leader Chuck Schumer posted: "Trump really said, 'I love the inflation.' On camera. For all of America to hear. His contempt for you knows no bounds." House Minority Leader Hakeem Jeffries said Trump had found "something that Donald Trump loves as much as he loves himself." Polling published this week found that 69 percent of Americans disapprove of Trump's handling of inflation, with only 18 percent approving.

With inflation at a three-year high and midterm elections on the horizon, the gap between the president's enthusiasm and public frustration has become a defining fault line. Elizabeth Renter, senior economist at NerdWallet, put the stakes plainly after the May report: "Consumers are paying more for essentials, and they can feel powerless to mitigate this pain."