Ad News Live
June 11, 2025
US Economic News Today: Consumer prices in May rose less than many had expected. According to a report released by the Bureau of Labor Statistics on Wednesday, President Donald Trump’s tariffs had not yet made a big impact on inflation.
The Consumer Price Index (CPI), which tracks a wide range of goods and services in the U.S. economy, increased by just 0.1% for the month. This brought the annual inflation rate to 2.4%.
Economists polled by Dow Jones had predicted a 0.2% monthly rise and a 2.4% yearly increase.
When food and energy are excluded, the core Consumer Price Index (CPI) rose by 0.1% in May. The yearly core inflation rate stood at 2.8%.
These numbers were lower than expected. Experts had forecast a 0.3% monthly increase and a 2.9% yearly rise.
The Federal Reserve views core inflation as a more reliable indicator of long-term trends.
Recently, several Fed officials have raised concerns. They worry that tariffs might push inflation higher in the coming months.
Ongoing weakness in energy and service prices helped balance out some of the overall price increases.
Interestingly, a few key items that were expected to rise due to tariffs actually went down.
Vehicle prices and clothing, in particular, showed unexpected declines.
This helped ease some inflation pressure during the month.
Energy prices fell by 1% in May. New vehicle prices dropped by 0.3%, while used vehicles saw a 0.5% decline.
Food and shelter costs each rose by 0.3%. The BLS noted that shelter was the main driver behind the slight CPI increase.
Apparel prices also went down, slipping by 0.4%.
The BLS report came out while the Trump administration was still working on new trade agreements.
On April 2, President Trump made a bold announcement that caught the attention of financial markets.
He introduced a 10% tariff on all U.S. imports.
Along with that, he added several “reciprocal tariffs” targeting countries he believed were treating the U.S. unfairly in trade.
Follow Us
AD News Live
