Yahoo Finance’s Allie Canal reports:
May’s Consumer Price Index (CPI) is expected to show prices increased at a slightly faster clip than in April. The report, due Wednesday at 8:30 a.m. ET, comes as investors closely watch for any signs that President Trump’s tariffs are impacting what consumers pay.
According to Bloomberg data, headline inflation is expected to have accelerated slightly to 2.4% in May from 2.3% in April, which marked the lowest yearly increase since February 2021. Month-over-month, prices are estimated to rise 0.2%, matching April’s increase.
On a “core” basis, which excludes volatile food and energy costs, CPI is expected to have risen 2.9% over the past year in May, a slight acceleration from April’s 2.8%. Monthly core price increases are anticipated to rise 0.3%, ahead of April’s 0.2%.
The report reflects the time period about a month after Trump’s “Liberation Day” tariff announcements shook markets and businesses. Since then, many of those “reciprocal” tariffs have been paused, but the 10% baseline duties for most countries remain in place. …
“May’s CPI report will be an important test of the speed and magnitude to which higher tariff rates are being passed along to the consumer,” said the Wells Fargo economics team, led by Sarah House, in a preview note.
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