JUNE 16, 2025 – CPI UP 2.4 PERCENT IN MAY
The consumer price index rose 2.4 percent year-over-year in May, up slightly from 2.3 percent experienced in April. Core inflation, excluding food and energy, was up by 2.8 percent for the third month in a row.
Even though the prices for some items have risen, possibly due to the impact of the new tariffs, a number of items fell in price to offset the gains. The tariffs have not pushed overall prices higher as businesses are absorbing the additional costs for now. But a number of companies have stated they will raise prices in the coming months to offset the tariff’s impact. The government’s temporary pause on reciprocal tariffs may end in July, which will drive up prices on some products that haven’t been affected yet.
With core inflation staying steady, above the 2 percent target, and the uncertainty regarding future tariffs, it is unlikely the Fed will lower rates at this week’s regularly scheduled meeting.