CPI report reveals inflation crept higher
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Economists and investors for possible effects of tariffs on prices when the Bureau of Labor Statistics release May’s consumer price index on Wednesday. The consumer price index is expected to increase 0.
The Bureau of Labor Statistics reported Wednesday that U.S. inflation measured by the Consumer Price Index increased by a lower than expected 0.1% in May.
The consumer price index increased 0.1% for the month of May, lower than economists' predictions, with the annual rate reaching 2.4%.
CPI inflation slows with a 0.1% rise in May, boosting stocks and treasuries. Click here to learn how tariffs and future CPI trends could affect markets.
WPI inflation declined due to a favourable base, with the food, non-food manufacturing, minerals, and fuel and power segments contributing to the dip.
The rate of inflation fell in the spring to the lowest level in more than four years even as high U.S. tariffs threatened to increase prices again. Is the bill from the trade wars about to come due?
May's CPI inflation data was uneventful. Check out if underlying trends could signal a shift toward higher inflation or not.
Retirees count on Social Security benefits to help them cover their costs of living. These benefits are supposed to help seniors pay for their essentials year after year, since workers pay into them throughout their entire careers with the promise of lifetime income that is protected against inflation.
Notably, the CPI for durable goods, most of which are imported or manufactured with imported content, decreased by a seasonally adjusted 0.1% month-to-month (-1.3% annualized), indicating that President Donald Trump's tariffs have not yet been fully passed through to the final consumer.
Beyond the ongoing quarter, the RBI expects inflation to rise to 3.4 per cent in July-September, 3.9 per cent in October-December, and end the fiscal at 4.4 per cent. However, according to HSBC, inflation is likely to average around 2.5 per cent for the next six months.
CPI inflation boosts stocks and bonds. Key drivers like car prices fall, supporting Fed rate cut hopes. Click for my full analysis of the data.