US inflation edges up as Trump tariffs flow through economy

FILE – A customer shops at a grocery store in Chicago, Sept. 19, 2024. (AP Photo/Nam Y. Huh, File)

WASHINGTON, United States —  US consumer inflation ticked up in May, in line with analyst expectations, government data showed Wednesday as President Donald Trump’s sweeping tariffs began to ripple through the world’s biggest economy.

The consumer price index (CPI) came in at 2.4 percent from a year ago, after a 2.3 percent reading in April, the Department of Labor said, with headline figures pulled down by energy prices.

All eyes were on US inflation data after Trump imposed a blanket 10 percent levy on imports from almost all trading partners in early April.

READ: US tariffs may hamper efforts to cool inflation – Fed official

He also unveiled higher rates on dozens of economies including India and the European Union, although these have been suspended until early July. Trump also engaged in a tit-for-tat tariff escalation with China.

But analysts said it will take months for the duties to impact inflation, as businesses rushed to stockpile goods before Trump’s new tariffs kicked in — and they are now still working their way through existing inventory.

Between April and May, CPI was up 0.1 percent, cooling from the rate in the prior month.

While housing prices climbed alongside food costs, energy prices edged down over the month, the report added.

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