Consumer sentiment improves for 1st time in 6 months
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Trump tariffs, inflation
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Fed, inflation and Economic Data
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Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month
Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.
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A sustained surge in oil prices is likely to complicate the U.S. fight against inflation. A $10-a-barrel increase would boost year-over-year growth in the consumer-price index by 0.5 percentage points,
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The latest Producer Price Index, a closely watched measurement of wholesale inflation, rose 0.1% in May, lifting the annual rate to 2.6%, according to Bureau of Labor Statistics data released Thursday.
Treasury yields are higher Friday, with investors calculating that the surge in oil prices could push up overall inflation and make it harder for the Federal Reserve to cut interest rates. While geopolitical instability can sometimes boost Treasurys as investors look to buy safer assets,
Overall, though, the trend for inflation has been a steady decline toward the Federal Reserve’s 2% annual target. The Fed, however, is not expected to change interest rates when it meets next week.
For four months many economists have predicted that US inflation would reignite, in large part due to President Donald Trump’s trade war and the knock-on effects his tariffs would have on the economy.