Fox Business host Larry Kudlow asked the director of the National Economic Council for an explanation as to why inflation keeps dogging the economy and the Trump administration.

The Consumer Price Index, a key measure of inflation, rose 3.8% in April from the year before. It was the largest jump since May 2023. Trump’s tariffs, as well as his decision to wage war on Iran, have created upward pressure on prices, especially oil, 20% of which flows through the Strait of Hormuz, which Iran has effectively closed.

Kevin Hassett joined Tuesday’s Kudlow, where the host – a former director of the NEC in President Donald Trump’s first term – noted the latest inflation data.

“So, Kevin, certainly on the surface, you’ve got to admit today’s CPI was a lousy number,” Kudlow began. “Sixth tenths of a percent, core – excluding energy – still up four tenths of a percent. So, the 12-month change is 3.8% and the core change is 2.8%. What does an NEC director say on a day like today when the CPI is coming out so poorly?”

“Well, first of all, this is a temporary energy shock,” Hassett insisted. “And that’s very clearly in the data. And so, the history of this is that people at the Federal Reserve and elsewhere tend to peer through energy shocks and use core CPI to forecast the future, not the energy shock data.”

On Tuesday, a reporter asked Trump about the economic costs of the Iran war and whether he takes them into consideration.

“Not even a little bit,” the president replied. “The only thing that matters when I’m talking about Iran, they can’t have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: we cannot let Iran have a nuclear weapon. That’s all. That’s the only thing that motivates me.”

According to U.S. intelligence, Iran was not close to having a nuclear weapon when the U.S. and Israel began bombing the country on Feb. 28.

Watch above via Fox Business Network.

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