Buckle up! We just entered the next phase of Trumpflation. [View all]

Two trump decisions have pushed U.S. inflation to a three-year high

To preface this discussion, a modest level of inflation is normal and healthy for the U.S. economy. But when prices rise quickly or move beyond subjective "modest" levels, it can upend the economy and/or the stock market. As of May 2026, U.S. inflation is at a three-year high.

The bulk of this year's inflationary surge has been driven by two decisions from President Donald Trump (i.e., "Trumpflation&quot . The first policy, implementing sweeping global tariffs, has placed modest upward pressure on prices for select goods.

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However, the primary catalyst behind inflation's jump from 2.4% in February to 4.2% in May is the Trump-led Iran war. Shortly after the president approved military operations against Iran, the latter closed the Strait of Hormuz to commercial vessels. This action crippled the daily flow of approximately 20 million barrels of petroleum liquids.

The reaction in energy markets was impossible to miss, with gas prices climbing at the fastest pace in over three decades and diesel prices rising by an even steeper percentage.

https://www.msn.com/en-us/money/markets/buckle-up-we-just-entered-the-next-phase-of-trumpflation/ar-AA2732pr