War With Iran Sends Inflation to Three-Year High

The U.S. war with Iran is being felt far beyond the battlefield. New federal data shows inflation climbed to 4.2% in May, its highest level since early 2023, driven largely by soaring fuel costs tied to the conflict.

Gas and oil prices are leading the surge, but the ripple effects are spreading. Groceries including coffee, lettuce, and baked goods are getting more expensive, dining out is costing more, and airfares are climbing as jet fuel prices rise.

President Trump pushed back on the numbers Wednesday, telling reporters in the Oval Office, "The numbers were great. You know what I really love? I love the inflation." He added moments later that once the war ends, prices will come down, saying they would fall "like a rock." The president later told the New York Post his earlier words were taken out of context, clarifying that he meant the numbers are "much lower than anticipated" given that the country is at war.

Trump's remarks drew sharp criticism from Democratic leaders, who argued he is prioritizing the conflict over the financial strain on everyday Americans. House Minority Leader Hakeem Jeffries said "the only conclusion we can draw is that he doesn't give a damn about making life better for everyday Americans." Senator Tim Kaine of Virginia pointed to broader instability, saying the "start, stop, start, stop" nature of the conflict is "not helping anybody."