US Inflation Dynamics Amidst Rising Tariffs

US inflation slightly increased last month due to rising food costs, with overall inflation remaining tame. Core prices, watched closely by economists, rose consistently. Trump's tariffs may contribute to future price hikes. The Labor Department is reducing data collection, potentially impacting future inflation reports.

Inflation in the US edged up slightly last month as food prices saw an uptick, yet overall inflation remained largely stable. Consumer prices registered a 2.4% rise in May compared to the previous year, as reported by the Labor Department on Wednesday.

Excluding the volatile food and energy sectors, core inflation held steady at a 2.8% increase for the third consecutive month. Economists often focus on core prices to better gauge inflation trends. Despite inflation hovering above the Federal Reserve's 2% target, a rate cut by the central bank remains unlikely.

President Donald Trump's tariffs appear to have influenced some price increases, though certain imported goods experienced price drops. The Labor Department's plan to reduce data collection for inflation reports has raised concerns among economists about potential volatility in the figures. While inflation has cooled over the year, core prices remain persistently high, complicating future economic calculations.

(With inputs from agencies.)