Wed, 11 Jun 2025

Wed, 11 Jun 2025 US inflation ticks higher but tariff impact remains muted

Higher prices for some items were offset by declines in other areas, such as petrol, airfares and clothing.

* US inflation rate rose 2.4% in May compared to a year ago, up from 2.3% in April.
* Prices increased due to tariffs on imports, but impact on consumers remained relatively muted.
* Housing and grocery prices continued to rise, while petrol, airfares, and clothing saw declines.
* Tariffs have raised costs for companies, which may lead to higher prices for households in the future.
* The White House claims that other countries will shoulder the burden of new tariffs, but economists disagree.
* Prices of major appliances jumped 4.3% and toys rose 2.2%, while overall prices rose just 0.1% between April and May.
* Analysts expect it may take time for tariffs to work their way into data, as companies adjust to new costs.
* The US Federal Reserve wants to see an inflation rate of around 2% and is cautious about raising interest rates again due to uncertainty surrounding the impact of tariffs.
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