Inflation increased less than anticipated in May, even as the effects of higher tariffs began to spread. According to the Bureau of Labor Statistics, consumer prices rose by 0.1% last month, while the annual inflation rate increased to 2.4% from 2.3% in April. This better-than-expected inflation report is a relief for Americans concerned about rising living costs and the potential impact of tariffs. However, while tariff impacts were not yet significant in this report, there are early signs of price increases and weaker consumer demand. Economists had forecast a 0.2% monthly rise and an annual CPI increase of 2.5%. Stock futures rose after the data release, but the Dow slightly declined by around 40 points at the opening bell. The core CPI, excluding food and energy, rose just 0.1% from April and remained steady at 2.8%. Experts caution that it may take several months for tariff-driven price increases to fully reflect in the CPI data.
— new from CNN
