Catenaa, Wednesday, June 11, 2025- US consumer inflation rose less than expected in May, official data showed on Wednesday, despite concerns that Trump tariffs would hike prices.
The Consumer Price Index rose 2.4% year over year in May, up from a 2.3% annual increase in April, the Bureau of Labor Statistics said.
It was the first time in four months that year-over-year inflation had risen. Rising housing costs pushed inflation up, while falling gas prices kept it from rising more than it did.
“Core” inflation, which excludes volatile prices for food and energy, rose 2.8% over the year, the same as in April. Forecasters had expected core inflation to rise 2.9% annually, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.
Prices for new cars fell 0.3% over the month despite foreign cars being subject to a 25% tariff. Clothing prices fell 0.4% over the month, even though most clothing is made abroad and subject to tariffs.
Early Wednesday, the US and China agreed to a framework and implementation plan aimed at easing tariff and trade tensions. President Trump signaled his approval, saying the deal was “done,” pending final sign-off from him and Chinese President Xi Jinping.
US stocks were red on Wednesday morning, with the Dow Jones Industrial Average slipping less than 0.1%, while the S&P 500 was also down by 0.1%. The Nasdaq Composite climbed roughly 0.1%.
