Latest news with #coreprices
CTV News
27-06-2025
- Business
- CTV News
Key U.S. inflation gauge rose last month while Americans cut back on spending
WASHINGTON — A key inflation gauge moved higher in May in the latest sign that prices remain stubbornly elevated while Americans cut back on their spending. Prices rose 2.3 per cent in May compared with a year ago, up from just 2.1 per cent in April, the Commerce Department said Friday. Excluding the volatile food and energy categories, core prices rose 2.7 per cent from a year earlier, an increase from 2.5 per cent the previous month. Both figures are modestly above the Federal Reserve's 2 per cent target. At the same time, Americans cut back on spending for the first time since January, as overall spending fell 0.1 per cent. The inflation figures suggest that President Donald Trump's broad-based tariffsare still having only a modest effect on prices. The costs of some goods, such as toys and sporting goods, have risen, but those increases have been partly offset by falling prices for new cars, airline fares, and apartment rentals, among other items. On a monthly basis, in fact, inflation was mostly tame. Prices rose just 0.1 per cent in May from April, according to the Commerce Department, the same as the previous month. Core prices climbed 0.2 per cent in May, more than economists expected and above last month's 0.1 per cent. The weakness in spending in part likely reflects reduced purchases of cars and other manufactured goods after Americans stepped up their spending on those items this spring to get ahead of tariffs. Christopher Rugaber, The Associated Press
Fast Company
11-06-2025
- Business
- Fast Company
U.S. inflation report shows 2.4% increase in consumer prices
U.S. inflation picked up a bit last month as food costs rose, though overall inflation remained mostly tame. Consumer prices increased 2.4% in May compared with a year ago, according to a Labor Department report released Wednesday. That is up from a 2.3% yearly increase in April. Excluding the volatile food and energy categories, core prices rose 2.8% for the third straight month. Economists pay close attention to core prices because they generally provide a better sense of where inflation is headed. The figures suggest inflation remains stubbornly above the Federal Reserve's 2% target, which makes it less likely that the central bank will cut its key short-term interest rate. President Donald Trump has repeatedly urged the central bank to reduce borrowing costs. There were scattered signs that Trump's tariffs may have contributed to some price increases, but the cost of some imported goods, such as clothing, fell in May from the previous month and many services, such as airline fares and hotel rooms, also dropped in price. On a monthly basis, overall prices ticked up just 0.1% from April to May, down from 0.2% previous month. Core prices also dropped to 0.1% from 0.2%. Grocery prices rose 0.3% from April to May, and are up 2.2% in the past year. Fruits and vegetables, breakfast cereals, and frozen foods all rose in price. Egg costs fell 2.7%, their second straight drop though they are still more than 40% more expensive than a year ago. Last week, the Labor Department's Bureau of Labor Statistics, which compiles the inflation data, said it is reducing the amount of data it collects for each inflation report. Economists have expressed concern about the cutback, and while it isn't clear how sharp the reduction is, most analysts say it is likely to have a minor impact. Still, any reduction in data collection could make the figures more volatile. Inflation has cooled in the past year and, excluding the impact of tariffs, economists say it would be on track to return to the Fed's target, which would allow the central bank to cut its key interest rates. Yet core prices have been more stubborn and were stuck between 3.2% and 3.4% for nearly a year until February, when they started to decline. They have now been at 2.8% for three straight months. Nearly all economists expect Trump's duties will make many things more expensive in the second half of this year, including cars and groceries, though by how much is still uncertain. Trump said Wednesday the U.S. will place 55% tariffs on all imports from China, up from the previous level of 30%. He has also imposed a 10% baseline tariff on imported goods from every other country, and 50% import taxes on steel and aluminum. Given the potential for higher prices in the coming months, Fed Chair Jerome Powell and other Fed officials have made clear they will keep their key rate unchanged until they have a better sense of how tariffs will affect the economy.
Washington Post
11-06-2025
- Business
- Washington Post
Inflation rose slightly last month as grocery prices ticked higher
WASHINGTON — U.S. inflation picked up a bit last month as food costs rose, though overall inflation remained mostly tame. Consumer prices increased 2.4% in May compared with a year ago, according to a Labor Department report released Wednesday. That is up from a 2.3% yearly increase in April. Excluding the volatile food and energy categories, core prices rose 2.8% for the third straight month. Economists pay close attention to core prices because they generally provide a better sense of where inflation is headed.
