Inflation holds steady
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Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.
U.S. consumer prices rose less than expected in May, influenced by cheaper gasoline but restrained by mounting import tariffs. While the Federal Reserve is likely to maintain current interest rates, underlying price pressures remain.
Both core and headline CPI came in below expectations, but economists say tariff risks and solid job growth leave the Fed in wait-and-see mode until fall.
CPI report shows that President Trump's whipsaw tariff policies have not had an outsized impact on inflation, but economists remain on guard.
May's CPI inflation data was uneventful. Check out if underlying trends could signal a shift toward higher inflation or not.
U.S. consumer prices rose slightly in May, driven by housing costs and partially offset by cheaper gasoline. Inflation's future trajectory remains uncertain amidst President Trump's tariffs. The Federal Reserve plans to maintain current interest rates,
St. Louis Fed President Alberto Musalem assesses a 50-50 chance of Trump's trade war triggering sustained inflation, creating uncertainty for U.S. policymakers through the summer. He suggests a potential scenario where trade and fiscal policy clarity emerges in July,
Inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs.
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