US President Donald Trump defended price increases in the face of data released on Wednesday showing inflation had climbed to its highest level since early 2023. Trump said he found the figures good and that inflation would quickly decline once the war ends.
This remark came at a time when economic pressure had returned to the top of the agenda following the latest rise in consumer prices. The annual inflation rate for May rose to 4.2 percent from 2.4 percent in the same period last year, marking a 0.5 percentage point increase from April.
The data showed not only that prices were rising but that wage increases were also lagging behind inflation. The Bureau of Labor Statistics announced that real average weekly earnings fell by 0.2 percent last month and by 0.7 percent compared to the same period last year. This decline was the largest annual drop since February 2023.
Trump had previously said he did not think much about Americans' financial situation while negotiations with Iran were ongoing. On May 12, he stated that no other issue was decisive for him except that Iran must not possess nuclear weapons.
Sharp reaction from Democrats
Democrats reacted sharply to Trump's latest remarks. Senate Democratic Leader Chuck Schumer and Senator Elizabeth Warren argued that Trump did not care about the rising cost of living.
House Speaker Mike Johnson, however, claimed that Trump's words were taken out of context. Johnson said economic indicators were generally strong but acknowledged that gasoline prices remained a significant problem for Americans.
Trump later stated that his words were misunderstood, saying he meant that inflation was not even higher. He predicted that prices would fall when the war ended and that the current rate would be the peak of the Iran war period.
Trump's economic rhetoric was built on a promise to reduce inflation during his election campaign. For Trump, who pledged to cut energy prices in half within a year of returning to office, inflation remains one of the most closely watched issues by voters.
Polls confirm this pressure. In measurements published by NBC News, only 32 percent of Americans approved of Trump's handling of inflation in April, while 68 percent said they disapproved. In the same period, the economy emerged as voters' most important issue.
