Consumer price index rose 0.1% in May on a seasonally adjusted basis, following a similar rise in April.
U.S. consumer prices rose slower than expected in May amid increasing economic uncertainty due to President Donald Trump’s tariff war.
According to data from the Bureau of Labor Statistics (BLS), the consumer price index (CPI) rose 0.1% in May on a seasonally adjusted basis, following a similar rise in April.
On an annual basis, CPI rose 2.4% before the seasonal adjustment.
A CNBC report said that the CPI came in lower than the estimated 0.2%, while the annual CPI was in line.
Core CPI, which excludes food and energy, rose 0.1% in May, after a 0.2% increase in March. This was lower than an estimated 0.3% increase, according to a Bloomberg report.
On an annual basis, core CPI rose 2.8% in May, lower than an estimated 2.9%.
The index for shelter rose 0.3% in May, and BLS said it was the primary reason for the increase in the all-items basket during the month. Food index also rose 0.3%, while egg prices fell 2.7% during the month.
The energy index witnessed a 1% decline, driven by a fall in the gasoline index. This comes after a 0.7% increase in April.
Following the release of CPI data, the benchmark 10-year Treasury yields fell four basis points to 4.434%, while the two-year treasuries fell six basis points to 3.949%.
The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.27% during Wednesday’s pre-market trading session.
Benchmark indices edged up too, after hovering in the red earlier in the morning. The SPDR S&P 500 ETF (SPY) was up 0.22% at the time of writing, while the Invesco QQQ Trust (QQQ) was higher by 0.29%.
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