06/11/2025

Inflation Rose Last Month

Meanwhile, cheaper gas and cars offset some costlier imports

Last month, U.S. inflation picked up a bit as higher prices for groceries and some imported goods were largely offset by cheaper gas, travel services, and rents.

Consumer prices increased 2.4 percent in May compared with a year ago, according to a Labor Department report released Wednesday. That is up from a 2.3 percent yearly increase in April. Excluding the volatile food and energy categories, core prices rose 2.8 percent for the third straight month. Economists pay close attention to core prices because they generally provide a better sense of where inflation is headed.

The cost of groceries, toys, games and large appliances rose, which could reflect the impact of President Donald Trump’s tariffs. Yet the price of new and used cars, clothes, air fares and hotel rooms all dropped from April to May.

Please select this link to read the complete article from The Associated Press.