Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month

The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.

Meaningfully larger increases are likely in coming months” to inflation as tariffs take hold, said the top U.S. economist at the nation’s largest bank.

Expected price hikes from a wave of US tariffs on global trade have yet to meaningfully show up in government inflation data, but economists warn that increases may be close.

Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.

Annual inflation rose to a 2.4 percent pace in May, suggesting President Donald Trump’s tariffs have yet to drive up the cost of everyday products.

Inflation dodged the tariff bullet again. The May Consumer Price Index rose +0.1% M/, less than the +0.2% consensus and the 0.2% increase in April.

U.S. inflation likely picked up a bit last month as President Donald Trump’s tariffs start to bite, but lower prices for gas and possibly for air fares and used cars may limit the overall increase