US President Donald Trump made a surprising defense of price increases following data released on Wednesday showing inflation at its highest level since early 2023. Trump said he viewed the numbers positively and predicted inflation would rapidly decline once the war ends.
Trump's comments came at a time when economic pressures have returned to the forefront after recent rises in consumer prices. The annual inflation rate for May rose to 4.2% from 2.4% in the same period last year, marking a 0.5 percentage point increase from April.
The data showed not only rising prices but also that wage increases lagged behind inflation. The Bureau of Labor Statistics reported that real average weekly earnings fell by 0.2% last month and declined 0.7% compared to the same period last year. This was the largest annual drop since February 2023.
In earlier statements, Trump had indicated that Americans were not very concerned about their financial situation while negotiations with Iran were ongoing. On May 12, he said that aside from preventing Iran from obtaining nuclear weapons, no other issue was decisive for him.
Democrats strongly criticized Trump's recent remarks. Senate Democratic leader Chuck Schumer and Senator Elizabeth Warren accused Trump of ignoring the rising cost of living.
House Speaker Mike Johnson argued that Trump's words were taken out of context. While stating that economic indicators were generally strong, Johnson also acknowledged that gasoline prices remained a significant problem for Americans.
Trump later clarified that his comments were misunderstood and that he meant inflation should not rise further. He predicted prices would fall once the war ended and that the current rate represented the peak during the Iran war period.
Trump's economic rhetoric has been built around a campaign promise to reduce inflation. Having pledged to halve energy prices within a year of taking office, inflation remains one of the most closely watched issues by voters.
Polls confirm this pressure. NBC News surveys showed that in April, only 32% of Americans approved of Trump's handling of inflation, while 68% disapproved. During the same period, the economy emerged as the top concern for voters.
