94Ha ViewpointThe data released by the U.S. Department of Labor on the 11th showed that the U.S. Consumer Price Index (CPI) in May rose 2.4% year-on-year, and the month-on-month data rose for the second consecutive month, with an increase of 0.1%.
The U.S. government announced the so-called “reciprocal tariff” policy in early April, and the inflation data in May is also regarded as an important indicator to measure the transmission effect of tariff costs on U.S. consumers.
Excluding the volatile food and energy prices, the U.S. core CPI in May rose 0.1% month-on-month and 2.8% year-on-year.
The housing price index is still the main driving factor for the increase in the U.S. CPI, which rose 0.3% month-on-month that month. Other categories with large month-on-month increases include food, medical services, personal supplies and education. The energy price index fell 1.0% month-on-month that month.
American public opinion believes that the above data is lower than the market’s expectations for price increases, and the overall inflation situation in the United States is “relatively mild.”
The Associated Press analysis believes that the U.S. core CPI remains stubborn, with a year-on-year increase of 2.8% for three consecutive months. As the substantial impact of trade policy on inflation remains unclear, recent economic indicators, including non-farm payrolls and inflation data, are not sufficient to open up policy space for the Federal Reserve to cut interest rates.
