Despite businesses' warnings of impending price hikes in response to President Trump's tariffs, recent data indicate limited actual increases so far, aiding in inflation control. According to the Consumer Price Index released in May, inflation rose by 2.4 percent year-on-year, slightly above April's figure. The core inflation rate, which excludes food and energy, stabilized at 2.8 percent. Economists expect a more pronounced effect from tariffs as summer approaches, likely leading to higher consumer costs as businesses adjust prices accordingly.
The latest data show that the anticipated price increases following President Trump's tariffs are happening only in a limited way, helping to keep inflation subdued.
Core inflation, which strips out volatile food and energy products, steadied at 2.8 percent, closely monitored by policymakers as a gauge for underlying price pressures.
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