U.S. Inflation Rises Modestly 2.4% in May, Core Prices Up 2.8%

U.S. inflation edged up slightly in May, with consumer prices rising 2.4% year-over-year, a modest increase from 2.3% in April, driven primarily by higher costs for groceries, food, and shelter. Core inflation, which excludes volatile food and energy prices, remained steady at 2.8%, while overall monthly inflation was subdued at 0.1%, below economists' expectations. Despite declines in prices for gas, airfares, clothing, and cars, essential expenses like housing and food continued to rise, exerting pressure on consumer budgets. The impact of President Donald Trump's tariffs has not yet significantly pushed prices higher, though economists predict these duties may contribute to inflation increases later in the year. The Federal Reserve's 2% inflation target remains unmet, fueling political pressure from President Trump and Vice President JD Vance for interest rate cuts. The mixed inflation data suggests some relief for consumers but signals ongoing challenges for stabilizing prices fully.