US inflation rises slightly in May

Inflation in the United States accelerated slightly in May, in line with analysts' expectations. However, the impact of the tariffs imposed by U.S. President Donald Trump has yet to be felt in the world's largest economy.

The Consumer Price Index (CPI) rose 2.4% year-over-year last month, up from 2.3% in April, according to the Consumer Price Index released yesterday by the Department of Labor.

All eyes were on these figures after Trump imposed a blanket 10% tariff on imports from nearly all of his trading partners in early April.

The president also announced higher tariffs on dozens of economies, including India and the European Union, although they were suspended until early July to allow for talks.

Trump imposed the highest tariffs on China, which retaliated, but both sides temporarily lowered their reciprocal tariffs in May while they negotiated how to resolve their trade dispute.

Analysts say it will take months to assess the impact of Trump's tariffs on consumer prices. This is partly because businesses rushed to stockpile goods before the new tariffs took effect and are still working with existing inventory.

As this stock declines, "we will see a greater impact of tariffs on prices," Nationwide chief economist Kathy Bostjancic told AFP.

In a post on his Truth Social platform after the inflation figures were released, Trump insisted that the Federal Reserve (Fed) should lower its benchmark interest rates, arguing that the country would "pay much less interest on the debt that comes due."

On a monthly basis, the CPI slowed to 0.1% in May (compared to 0.2% in April), weighed down by falling energy prices.

Meanwhile, the core CPI, which excludes volatile energy and food prices, held at the same pace (2.8% annually) it has had since March, despite analysts' expectations for a deterioration.

Samuel Tombs, an economist at Pantheon Macroeconomics, estimates it will take at least three months for retailers to pass on cost increases to customers.