Inflation rose less than expected last month despite Trump’s tariffs

Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.

Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread. Consumer prices rose 0.1% last month, while the annual inflation rate increased to 2.4% from a four-year-low notched in April, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics. May’s overall inflation readings came in better than expected. Economists had projected that falling gas prices would keep the overall monthly inflation rate in check while year-ago comparisons became less favorable. Still, economists also anticipated that price pressures would continue to build as businesses try to adapt to President Donald Trump’s sharp escalation in the US tariff rate and unpredictable trade policy. This story is developing and will be updated.