Inflation, consumer prices and Tariffs
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Energy declined 1% on the month, while new and used vehicle prices posted respective declines of 0.3% and 0.5%. Within energy, gasoline posted a 2.6% drop that took the year-over-
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.
Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month
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.
The upcoming FOMC meeting on June 17-18 may increase pressure on Powell to consider a rate cut if the May inflation number decreases.
U.S. inflation slowed in April with core prices increasing at a moderate pace, despite looming tariff concerns. President Trump's tariffs, mostly struck down recently, have yet to impact prices significantly.
Consumer prices increased marginally in May amid cheaper gasoline, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs.
US Federal Reserve Governor Christopher Waller anticipates interest rate cuts later this year due to anticipated inflation and unemployment increases due to US tariffs.