Donald Trump in massive trouble as US inflation hits three-year high, expensive oil disrupts household budgets; White House now plans to...
President Donald Trump reacted to the inflation figures, saying, Good numbers. I like it. I like inflation. He added that inflation could decline once oil supplies through the Strait of Hormuz return to normal.
US President Donald Trump (File)
New Delhi: The impact of the massive spike in crude oil prices due to the Iran war is now becoming visible in the US economy as well. According to the reports, the annual inflation in the United States rose to 4.2 percent in May, the highest level in three years. Experts are of the opinion that the primary reason behind this increase is the rise in oil prices. Inflation has now reached double the Federal Reserve's target, raising concerns that interest rates may also be increased, as inflation has hit its highest level since April 2023.
According to the Bureau of Labor Statistics, Consumer Price Index (CPI) inflation increased by 0.50% on a monthly basis in May. Nearly 60 percent of this increase was driven by higher oil prices. However, prices of food and grocery items did not rise as sharply in May as they did in April. Food prices increased by 0.2 percent in May, while grocery prices rose by 0.1 percent. In comparison, food prices had increased by 0.5 percent and grocery prices by 0.7 percent in April.
Here are some of the key details:
- The impact of the spike in crude oil prices due to the Iran war is now becoming visible in the US economy.
- The annual inflation in the United States rose to 4.2 percent in May, the highest level in three years.
- The primary reason behind this increase is the rise in oil prices.
- Inflation has now reached double the Federal Reserve's target, raising concerns that interest rates may also be increased, as inflation has hit its highest level since April 2023.
- According to the Bureau of Labor Statistics, Consumer Price Index (CPI) inflation increased by 0.50% on a monthly basis in May.
- Nearly 60 percent of this increase was driven by higher oil prices.
- Prices of food and grocery items did not rise as sharply in May as they did in April.
- Food prices increased by 0.2 percent in May, while grocery prices rose by 0.1 percent.
Meanwhile, President Donald Trump reacted to the inflation figures, saying, "Good numbers. I like it. I like inflation." He added that inflation could decline once oil supplies through the Strait of Hormuz return to normal.
However, tensions in the Middle East have escalated once again. The United States has targeted several locations in Iran, and Iran has threatened retaliation. As a result, crude oil prices rose by nearly 2% during trading today.
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