Less than expected increased consumer prices in USA May, as President Donald Trump’s duties have not yet shown a significant impact on inflationThe statistical service statistical service said Wednesday (11.6.2025).
The consumer price index, a wide measure of goods and services across the extensive US economy, increased by 0.1% for the month, with annual inflation to be 2.4%. Economists asked by Dow Jones expecting corresponding indications of 0.2% and 2.4%.
Except for food and energy, the basic CRC stood at 0.1% and 2.8% respectively, compared to 0.3% and 2.9%. Federal Bank officials (Fed) believe that the core is a better measure of long -term trends, and many have recently expressed concerns about the impact that inflation duties will have.
The annual pace for all data scored one step up by 0.1 percentage points compared to April, while the core was the same. The ongoing weakness in energy prices contributed to the compensation of some of the increases, while a handful of other key elements that were expected to show off duty -related jumps, in particular the prices of vehicles and clothing, in fact decreased.
The latest figures remain significantly above the 2% target for inflation of the US Federal Bank (FED), but do not signal urgent need for action. Central bankers around Fed President Jerome Powell have been trying for years to reduce inflation to the desired level. Fed President Jerome Powell has recently stressed that he wants to wait until the impact of Trump’s tariff policy become more noticeable on the US economy.
In a week, central bankers will meet again to decide on interest rates in the US. Currently, basic interest rates range from 4.25 to 4.50 percent. Investors of interest rates are firmly awaiting that interest rates will remain within that range. After the publication of inflation data, the likelihood of this was 99.9 percent, according to data from the CME stock market.
Last week, after powerful data on the labor market, Trump demanded Powell to reduce interest rates by a full percentage point. Such important steps are usually intended only for crises. Market observers find it unlikely. “It would be irresponsible to reduce interest rates without knowing more accurately how inflation will evolve in the light of tariff measures,” says Independent Capital Markets Court Sri-Koumar.
Investors react with relief to prices data
The data is received positively by markets: US indicators move higher before the commencement of transactions on Wall Street. The German reference index, DAX, is expanding its profits and is currently rising about 0.5% to 24,100 points. Investors hope that relaxation of inflation will make interest rates more likely in the coming months.
In the bond market, the yield on the ten -year US bonds fall below 4.45% in response to inflation data, while bond prices are rising as a confrontation. The two -year bond, which is more sensitive to monetary policy, also has a lower performance. The dollar index, which measures the US currency’s yield against the coins of various industrial countries, decreased by about 0.4%.
In the trade dispute with China, Trump confirmed a significant progress in the negotiations on Wednesday. The two world powers have agreed to frame-by-frame terms that should facilitate the export of rare earths from China, as Trump announced on his social network Truth Social. Both he and Chinese President Si still must officially approve the agreement.