Tariffs Trigger Inflation Surge in the U.S.
U.S. inflation likely increased due to President Trump's tariffs, which raised costs of imports like clothes and appliances. Although a rise in core prices is expected, fluctuating gas prices may temper overall inflation. The Fed remains cautious amid uncertainties about the economic impact of tariffs.
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- United States
U.S. inflation appears to be on the rise as tariffs imposed by President Donald Trump take effect, particularly impacting the costs of imported goods like clothing and appliances. Despite potential moderating factors, such as lower gas prices, economists forecast a notable uptick in inflation figures.
According to a government inflation report, consumer prices rose 2.5% in May compared to the previous year, with core prices—excluding food and energy—increasing to 2.9%. The Federal Reserve monitors these core figures closely, as they indicate longer-term inflation trends beyond volatile sectors.
As economists predict higher costs in the coming months, the Federal Reserve has paused rate adjustments to better understand tariff impacts. Companies are beginning to respond, with some, like Walmart, already raising prices. The situation underscores ongoing economic uncertainty as new tariffs take effect.
(With inputs from agencies.)
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