US Inflation Unexpectedly Lower Than Expected, May Headline CPI Up 2.4% Year-on-Year

Jin10 News, June 11—Despite U.S. President Trump’s trade war intensifying price pressures, the U.S. unadjusted CPI annual rate for May rose to 2.4%, higher than April’s 2.3% increase but below analysts’ forecast of 2.5%. As the impact of Trump’s tariff policies announced in April is passed on to consumers and businesses in the world’s largest economy, inflation is expected to rise further in the coming months. The Federal Reserve is expected to keep borrowing costs between 4.25% and 4.5% at its meeting next week, as inflation is projected to climb further. Trump has pressured Fed Chair Jerome Powell to follow the lead of the European Central Bank and the Bank of England by cutting borrowing costs this year, pushing for a full percentage point rate cut, and has called Powell a “disaster.” The Fed’s preferred inflation gauge, PCE inflation, fell to 2.1% in April, but is also expected to rise in the coming months. (Jin10 Data APP)