At the same time, the US President held out the prospect of a decline in inflation.
US President Donald Trump Reuters/Evan Vucci
US President Donald Trump irritated with a surprising statement about the significantly increased inflation in the USA. “The numbers were great. I love inflation,” he said in response to a journalist’s question about whether the rise in inflation didn’t worry him.
Trump left it open exactly why he thinks it’s a good thing that his compatriots now have to pay significantly more money for everyday shopping and gas, for example. At the same time, however, he held out the prospect of an easing of inflation – but he did not explain exactly how.
On Wednesday, the US Department of Labor announced that inflation rose above four percent in May for the first time in three years. Consumer prices rose by 4.2 percent compared to the same month last year. Inflation rose significantly for the second month in a row and continued to rise above the rate set by the US Federal Reserve Federal Reserve (Fed) target of two percent.
The reason for this is the consequences of the Iran war and the blockades in the Strait of Hormuz, which significantly limited the global energy supply. Accordingly, companies currently have to spend a lot more money on oil, gas and fertilizer. This is also proven by the May figures in the largest economy: 23.5 percent more had to be paid for energy than a year ago. The rise in gasoline prices was particularly strong. Fuel has become more expensive by around 40 percent.
The US energy authority EIA now also expects that crude oil will be significantly more expensive this year. While the authority assumed an average price of $58 per barrel (159 liters) of Brent crude oil in February, the price is now expected to be $95. In 2027, the average price is expected to fall to $79 per barrel. But that would still be more than the $53 that the authority had expected in February. (APA/dpa)
