According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose just 0.1% in May 2025, bringing the annual inflation rate to 2.4%, according to CNBC TV18. Economists had anticipated a 0.2% increase.Â
In May 2025, the overall CPI rose 0.1% monthly, resulting in a 2.4% year-over-year increase. Core CPI, excluding volatile food and energy, also rose 0.1% monthly and 2.8% year-over-year. Energy prices, particularly gasoline, saw a significant decline.
This data suggests inflation eased in May 2025 due to falling energy prices and slower shelter cost increases.
Federal Reserve and inflation
The Federal Reserve aims for an optimal inflation level but has seen recent US inflation above its 2% target. The Federal Reserve reduced interest rates in September 2024, but caution remains regarding further cuts while core inflation is elevated.
