Inflation rate edged higher by 2.4% in May, CPI report shows. Here’s what that means.

Protecting Your Wallet Against Tariffs

In May, the Consumer Price Index (CPI) rose by 2.4% annually, reflecting potential impacts from President Trump’s tariffs on imported goods, which U.S. companies may pass on to consumers. Although inflation is lower than its peak of 9.1% in June 2022, it remains above the Federal Reserve’s target of 2%, leading to expectations that interest rates will remain unchanged at the upcoming June meeting. Economists predict that upcoming tariffs could further increase inflation, with Goldman Sachs forecasting a monthly core CPI inflation rate of around 0.35% in the near term.