FX.co ★ US Inflation Rate Rises Less than Expected

The United States witnessed an increase in its annual inflation rate for the first time in four months, climbing to 2.4% in May 2025 from 2.3% in April, which marked the lowest level since 2021. This figure fell short of the anticipated 2.5%. Notable contributors to this rise included higher prices in sectors like food, which saw an increase to 2.9% from April's 2.8%, transportation services moving up to 2.8% from 2.5%, used cars and trucks at 1.8% compared to 1.5%, and new vehicles at 0.4% from 0.3%. Conversely, there was a slight decrease in inflation for shelter, moving to 3.9% from 4%. In parallel, energy costs experienced a decline of 3.5%, following a 3.7% drop in April. Gasoline prices decreased further to -12% from -11.8%, and fuel oil dropped to -8.6% from -9.6%, whereas the increase in natural gas prices remained significant at 15.3%, down slightly from 15.7%. On a monthly basis, the Consumer Price Index (CPI) saw a minor uptick of 0.1%, trailing the previous month's 0.2% and not meeting the forecasted 0.2%. Additionally, the annual core inflation, excluding the volatile categories of food and energy, held steady at 2.8%, maintaining its lowest rate since 2021, whereas projections had estimated a rise to 2.9%. The monthly core CPI also inched up by 0.1%, which was below April's 0.2% and the expected increase of 0.3%.