President Donald Trump recently expressed a surprising optimism about the current state of inflation, stating ‘I love the inflation.’ This comment came after the release of a report showing the consumer price index had jumped 4.2% over the last year.
Inflation and the Economy
Trump’s argument is that higher prices are a result of the Iran war raising energy costs. He claimed that relief is already on its way due to a secret military operation that ferried 100 million barrels of oil through the Strait of Hormuz.
Despite Trump’s claims, the financial markets were cautious, with U.S. crude oil futures climbing roughly 4% on Wednesday afternoon. The White House pointed out that some expenses had dropped in May, including the price of new vehicles, prescription drugs, and auto insurance.
However, when the overall inflation number is paired with the change in hourly wages, there is a bleak sign that people’s spending power relative to their earnings has declined. Trump’s comments were met with criticism from Democrats, with Senate Democratic Leader Chuck Schumer stating that Trump’s ‘contempt for you knows no bounds.’
Original reporting: Dallas TX News (HLL/CB) — read the source article.
