May, wholesale inflation
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The U.S. stock market has rallied in recent weeks, recovering from a slump in April sparked by Trump's "Liberation Day" tariffs. At 11:24 a.m. ET, the Dow Jones Industrial Average rose 165.55 points, or 0.39%, to 43,032.42, the S&P 500 gained 16.18 points, or 0.27%, to 6,054.99 and the Nasdaq Composite gained 68.54 points, or 0.35%, to 19,783.53.
The inflation rate is inching higher, with Wall Street expecting tariffs to increase prices throughout the remainder of 2025.
Inflation broadly held steady in May — and by some measures cooled unexpectedly — as price growth data showed few signs of President Donald Trump’s tariffs hitting the consumer economy
The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.
The consumer price index increased 0.1% for the month of May, lower than economists' predictions, with the annual rate reaching 2.4%.
The S&P 500 and Nasdaq opened near record levels on Wednesday, as a cooler-than-expected inflation report calmed concerns around tariff-driven price pressures and fanned expectations for interest rate cuts.
Here are the key points to know ahead of this morning's consumer-price index for May: Year-over-year inflation is expected to pick up slightly from April to 2.4%, according to the consensus estimate.
Discover May's inflation trends with insights from the Bureau of Labor Statistics. Click for my full review of the CPI data and a look at what it means for markets.
Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.
The Bureau of Labor Statistics has released the US inflation numbers for May 2025. The annual inflation rate in the US accelerated for the first time in four months to 2.4% in May 2025 from 2.3% in April, but was below forecasts of 2.5%.
Traders and investors moved in and purchased Treasuries across the yield curve in response to the latest Consumer Price Index report. Learn more here.
Wednesday’s inflation report won’t change much for the Federal Reserve because it will take several months of price data to convince officials that tariff-related risks to inflation won’t send up prices in a concerning fashion.