Consumer prices were only slightly affected by President Donald Trump’s tariffs in May, according to new numbers from the U.S. Bureau of Labor Statistics.
Wednesday’s reading shows a 0.1% rise in consumer prices in May. This number comes in just lower than April’s 0.2% increase.
U.S. businesses have been forewarning customers of increased prices for several months now in response to Trump’s ‘Liberation Day’ tariffs. May’s relatively subdued rise in inflation, however, demonstrates that recent tariffs have not had a significant impact on the economy thus far.
The reading also displayed a 2.4% jump in the annual inflation rate.
The Labor Department’s Consumer Price Index is a wide measure of how much consumers are paying for goods and services in the U.S. economy. The CPI is released monthly and conveys how much prices have changed over time.
May’s 0.1% rise in consumer prices comes in lower than expected by experts. Economists forecasted a rise between 0.2% and 2.4%, according to surveys done by Dow Jones.
The White House responded to Wednesday’s reading with satisfaction.
“America is beating inflation as President Donald J. Trump leads the country into the new Golden Age with lower costs, higher pay, and economic opportunity for all,” the White House said Wednesday morning.
Trump has urged the Federal Reserve to cut interest rates in recent months as a response to lower inflation. As a result of Wednesday’s reading, Vice President J.D. Vance criticized the Fed on social media for keeping interest rates steady.
“The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vance said.
