Consumer prices in the U.S. ticked up more modestly than expected in May, as both headline inflation and the core index excluding more volatile food and energy prices didn't show signs of a widely-feared tariff bump. According to data published by the Bureau of Labor Statistics on Wednesday, the Consumer Price Index for All Urban Consumers (CPI-U) increased 2.4 percent over the last 12 months before seasonal adjustment, a slight acceleration from 2.3 percent in April, but level with the 2.4 percent reading from March. The core index remained flat at 2.8 percent for the third consecutive month after dropping below 3 percent for the first time since early 2021 in March. On a monthly basis, consumer prices increased 0.1 percent in May, which is a deceleration from an 0.2-percent increase in April.[...]
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5 sats \ 0 replies \ @021f3af1a6 11 Jun
Interesting that the feared tariff effects didn’t show up in the May inflation data — at least not yet. It makes me wonder if businesses are absorbing some of the cost increases or if delays in supply chains are pushing the impact out a few months.
Also, with core inflation staying flat at 2.8% for three months, maybe the Fed holds rates steady a bit longer than expected?
Anyone think the full tariff effect is just lagging behind?
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