US Inflation Holds Steady at 2.4% in May Amid Tariff Impact

Recent inflation data from multiple sources indicate a general trend of slowing inflation across various regions. In Ireland, inflation slowed to 1.7% in May from 2.2% in April, with notable price increases in food, non-alcoholic beverages, alcohol, tobacco, rents, and insurance, while transport and clothing prices declined. In the United States, the Consumer Price Index rose by only 0.1% in May, resulting in a 12-month inflation rate of 2.4%, aligning closely with the Federal Reserve's target, despite ongoing tariff impacts from President Trump’s trade policies. The White House highlighted this controlled inflation rate as an economic victory, alongside the announcement of a significant trade deal with China involving rare earth minerals and sustained tariffs. Economists noted that while some tariffs have restrained cost increases, ongoing tariffs may soon lead to higher consumer prices, with retailers like Walmart warning of upcoming price rises. Globally, OECD inflation remained stable at 4.2% in April, with energy prices falling in most countries, while core inflation remained the main driver in major economies, and euro area inflation slightly decreased to an estimated 1.9% in May.