Price Shift: CPI Trends Amid Tariff Tensions

In May, U.S. consumer prices showed a modest increase, primarily due to rising housing costs, though cheaper gasoline provided some relief, according to a Labor Department report. Inflation is projected to climb as the Trump administration's tariffs take hold, despite recent muted price pressures.

Walmart indicated price hikes for late May and June, and while airline fares and rents saw slower price gains, the Federal Reserve plans to keep interest rates steady. Analysts suggest tariffs are the key impediment, predicting inflation could accelerate as companies raise prices gradually to avoid alarming consumers.

The Consumer Price Index (CPI) inched up 0.1%, with shelter costs as the main culprit. Food prices reflected mixed trends, while gasoline became cheaper. As economists await further developments, questions surrounding tariff impacts and federal staffing cuts continue to loom large.

(With inputs from agencies.)