Trump predicts lower inflation after Iran war

U.S. President Donald Trump predicted on Tuesday (May 12) that inflation would drop as soon as the war with Iran ends.

"But our inflation is just short-term. 'Cause if you go from before - just before - the war, we were for the last three months 1.7 percent. And now, what you have, as soon as this war is over, you're going to see inflation go down to probably one and a half percent," Trump told reporters as he left the White House for his highly anticipated trip to China.

Trump's comments came as U.S. consumer inflation increased further in April, with the annual rate posting its largest gain in three years, according to the Labor Department. The back-to-back rises in the Consumer Price Index reported by the Labor Department on Tuesday, reflected strong gains in the costs of energy products amid the U.S.-Israeli war with Iran. Food prices surged last month and inflation also spilled over to the services sector, with higher rental costs and airfares.

Production: Kristin Neubauer/Reuters