Inflation holds steady
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U.S. inflation saw a slight increase in May, with consumer prices rising 2.4% year-over-year, driven by higher food costs. Core prices, excluding food and energy, remained stubbornly high at 2.8% for the third consecutive month,
Overall, though, the trend for inflation has been a steady decline toward the Federal Reserve’s 2% annual target. The Fed, however, is not expected to change interest rates when it meets next week.
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.
The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.
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,