U.S. Consumer Prices Edge Up in May

Consumer prices in the U.S. saw a slight increase in May, marking the fourth month in a row of modest inflation. This trend suggests that the tariffs introduced during the Trump administration have not substantially affected prices for American consumers.

According to the Labor Department, the consumer price index (CPI)—which is a key inflation measure—rose by 0.1% from the previous month. Core prices, which exclude the more volatile food and energy sectors, also increased by 0.1%.

When looking at year-over-year data, consumer prices have gone up by 2.4%, while core prices have seen a rise of 2.8%.

Economists had forecasted a 0.2% rise in prices, aligning with the inflation figures reported for April. For core prices, they anticipated a 0.3% increase, which would be a slight uptick from the 0.2% recorded in the prior month.

Under President Trump’s administration, inflation has remained relatively low—a situation that seems to counter his earlier claims that trade policies would cause an increase in consumer prices.

In energy markets, prices dropped by 2.4% in May, with gasoline costs falling by 2.6%. In fact, gasoline prices have decreased by 12.0% compared to last year.

On the grocery front, prices rose by 0.3%, slightly offsetting a 0.4% decrease from the previous month. Year-over-year, grocery prices are up by 2.2%. Restaurant prices also increased by 0.3%, marking a 3.8% rise over the last year. Interestingly, egg prices declined by 2.7% after a steep drop of 12.7% the prior month.

Durable goods—a category economists had anticipated would see and impact from tariffs—dipped by 0.1% in May and remained unchanged from a year ago. Prices for non-durable goods decreased by 0.3%, with the exclusion of food reflecting a 0.9% drop.

New car prices, which were expected to bear the brunt of tariff impacts, fell by 0.3% in May. This is the second consecutive month of price declines, following a flat performance in April and a minimal increase of 0.1% in March. Prices actually dropped in February after holding steady in January.

Used car prices also saw a decline in May, dropping by 0.5%—this marks the third month in row of falling prices in that sector.

Core product prices, which exclude food and energy, remained stable for the month, showing just a 0.3% increase year-over-year.

Apparel prices, another category where analysts have predicted possible inflation due to tariffs, also fell. Clothing prices have seen decreases for two consecutive months, with both men’s and women’s shoes following suit.

After experiencing a 0.2% rise in April, home furniture prices increased by 0.3%. They remained steady in March, suggesting a consistent trend.

Appliance prices, which may indicate tariff influence, rose by 0.8% for the second month running. However, compared to last year, they have dropped by 0.8%, indicating the recent uptick could simply be a rebound from earlier declines.

In tech, smartphone prices fell again in May, continuing a trend seen in the past couple of months. Computer prices, on the other hand, shot up by 1.1% in May but have decreased by 3.5% over the past year.

Inflation remains relatively tame in the services sector, which had previously been the primary source of inflationary pressure. Core service prices, excluding energy, increased by 0.2% in May, with service costs excluding housing rents also modestly rising by 0.2%.