Overview

• The Consumer Price Index rose 0.1% in May, lifting annual inflation to 2.4% while core CPI held at 2.8%.
• President Trump hailed the report and urged a full point rate cut, but Fed officials are poised to maintain rates at 4.25%–4.50%.
• Businesses stockpiled imports ahead of higher duties, allowing many to absorb tariff costs and delay passing them on to consumers.
• Economists warn that dwindling inventories could lead to noticeable tariff-driven price increases over the summer and fall.
• Trump announced a US-China trade deal with combined duties of 55%, though it still requires final approval by both presidents.