CPI Inflation Data is Muted as Tariff Impact is Limited

Businesses across the United States have for months warned that they would raise prices on their customers in response to President Trump’s tariffs.

The latest data show that it is happening only in a limited way so far, helping to keep a lid on inflation.

The Consumer Price Index, released on Wednesday, rose 2.4 percent in May from a year earlier, just above April’s 2.3 percent annual increase.

“Core” inflation steadied at 2.8 percent. That measure, which strips out volatile food and energy products, is closely monitored by policymakers as a gauge for underlying price pressures.

On a monthly basis, the overall measure rose 0.1 percent, while the core index rose 0.1 percent. Both were below economists’ expectations.

The latest data, released by the Bureau of Labor Statistics, reflects only the early impact of Mr. Trump’s tariffs — the scope and scale of which have changed repeatedly since the president launched his global trade war. Tariffs are a tax on imports, and economists expect the effect on prices to become more pronounced over the summer as more businesses pass along higher costs to consumers, as many have said they will do.