U.S. inflation spikes in May as tariff costs hit consumers
In May, inflation in the U.S. accelerated mainly due to rising commodity prices. Companies began passing the costs of higher tariffs onto consumers, which affected the increase in the index of commodity and service prices, excluding food and energy, by 0.3 percent. This represents the highest increase in four months.
Tariffs are impacting consumers. The increase in U.S. inflation in May was primarily because of higher commodity prices, a result of transferring tariff costs to consumers.
According to data collected by "Bloomberg," the index of commodity and service prices, excluding food and energy, rose by 0.3 percent in May, marking the highest increase in four months.
Forecasts suggest that the annual core inflation rate could reach 2.9 percent. This is the first such increase this year. Inflation reports and producer price data will be crucial for the Federal Reserve ahead of the June meeting, where the effects of trade policy on the economy will be discussed.
Despite pressure from President Donald Trump to lower interest rates, Fed Chair Jerome Powell and his colleagues emphasize that they have the time to assess the impact of tariffs on the economy.
The rise in jobless claims in May indicates possible tensions in the labour market.
