From Yahoo Finance: 2025-06-11 08:33:00

Inflation increased slightly in May, exceeding the Federal Reserve’s target rate. The consumer price index rose 0.1% from last month and was up 2.4% annually. Core prices, excluding gas and food, increased 0.1% monthly and 2.8% annually, slightly below economists’ estimates.

Job growth slowed in May amid economic uncertainty, with persistent inflationary pressures despite progress in meeting the Federal Reserve’s 2% target. High inflation strains U.S. households, particularly lower-income families facing increased costs for necessities like food and rent.

Food prices rose 0.3% in May, with the price of eggs decreasing 2.7%. Meat, poultry, fish, and dairy prices declined, while fruits, vegetables, cereals, and bakery products saw increases. Energy prices dropped 1% in May, with gasoline down 2.6% and electricity up 0.9%.

Housing prices increased 0.3% in May, driving the overall CPI rise, with shelter costs up 3.9% annually. Transportation costs decreased slightly, but are 2.8% higher annually. Airline fares fell 2.7%, while motor vehicle insurance rose 0.7% in May.

Federal Reserve Chair Jerome Powell stated the central bank will monitor economic data before adjusting interest rates. Economists anticipate rising consumer prices due to President Trump’s tariffs, which are yet to significantly impact inflation. The impact of tariffs remains a concern for future inflation.

Read more: Inflation increased slightly on an annual basis in May