U.S. Inflation Rises Slightly in May 2025, Remains Below Expectations June 13, 2025

Washington — U.S. inflation showed a modest increase in May 2025, with the annual rate rising to 2.4%, slightly higher than April's 2.3% but still below economists' expectations of 2.5%. The latest Consumer Price Index (CPI) data suggests that price pressures remain under control for now, though external factors could influence future trends.

Key Inflation Data

According to official reports:

• Monthly CPI increase: 0.1% (below forecasts of 0.2%).

• Core inflation (excluding food and energy): Remained steady at 2.8% year-over-year.

• Energy prices: Fell by 1% month-over-month.

• Housing costs: Continued to be the largest contributor to inflation.

Economic Factors and Future Outlook

While current data indicates stable inflation, analysts warn that new trade policies and fluctuations in energy prices could impact prices in the coming months. Some businesses have already signaled potential price adjustments, which may affect consumer costs later this year.

Policy Responses

• Federal Reserve: Monitoring inflation closely, with expectations of maintaining current interest rates in the near term.

• Government officials: Emphasizing measures to sustain economic stability amid global uncertainties.

Conclusion

May's inflation figures suggest that price increases remain manageable. However, policymakers and markets will continue to watch for signs of rising pressures, particularly from trade and energy sectors.