Inflation in May 2025
The US inflation recorded a slight increase in May 2025, influencing expectations regarding possible interest rate cuts. Here are the central points regarding the current inflation situation in the USA:
- Annual Inflation Rate: In May, the annual inflation rate rose to 2.4%, up from 2.3% in April. This is the first increase in four months.
- Monthly Change: While the change for May was not specified, consumer prices increased by 0.2% in April.
Expectations and Implications
- Interest Rate Cuts: The rise in inflation reduces the likelihood of short-term interest rate cuts. The Federal Reserve is closely monitoring inflation to adjust monetary policy accordingly.
- Inflation Forecasts: Despite the increase, the rate remained below expectations of 2.5%, indicating a more stable economy than anticipated.
- Inflation Uncertainty: Uncertainty regarding future inflation rates has decreased in May.
Core Inflation
- Core Inflation Rate: This rate, which excludes food and energy, remained at 2.8% in both April and May.
- Forecasts for Core Inflation: An increase to 2.9% is expected by the end of the quarter according to Trading Economics forecasts.
In summary, the moderate rise in US inflation in May could influence future monetary policy; however, the inflation remains below expectations, indicating ongoing economic stability.