Inflation and Tariffs: Navigating the Rising Cost Landscape

In May, U.S. consumer prices saw a slight increase, with cheaper gasoline mitigating the impact of rising rents. Nevertheless, experts anticipate a surge in inflation in the coming months as a result of tariffs imposed by the Trump administration, according to a Labor Department report released Wednesday.

While economists noted inflation's slow response to tariffs due to pre-existing inventories, retail giant Walmart mentioned intentions to hike prices beginning in late May and June. Meanwhile, the Federal Reserve is likely to maintain steady interest rates, with hopes of a monetary policy easing spree in September.

The Consumer Price Index rose by 0.1% in May. Economists predict inflation will heat up during the latter half of the year as businesses incrementally adjust prices. However, Trump maintains that tariffs are paid by exporting nations, contradicting trends signaling rising import prices.

(With inputs from agencies.)