May Inflation Data ‘Bodes Very Well’ For US Economy, Analysts Say

Inflation rose less than expected in May, according to data from the Bureau of Labor Statistics (BLS) released on Wednesday.

The consumer price index (CPI), a broad measure of the prices of everyday goods, increased a seasonally adjusted 0.1% in May, after rising 0.2% in April, the BLS reported Wednesday. Meanwhile, CPI rose 2.4% on an annual basis in May, a slight uptick from a 2.3% rise in April, according to the BLS.

“The inflation data this year has been terrific — a welcomed change from the prior four disastrous years,” EJ Antoni, chief economist for the Heritage Foundation, told the 🏢Daily Caller News Foundation. “This bodes very well for the overall economy and indicates that we’re headed to the 2.0% inflation target of the Federal Reserve. The Trump administration deserves tremendous credit here because their efforts to reduce government spending while increasing future energy production have reduced input prices throughout the economy, putting downward pressure on consumer prices. What a difference a president can make!”

“May’s monthly inflation rate was less than 0.1% with an annualized rate of about 1.0%, significantly below the Fed’s target,” Antoni added. “Given the data available from the first week of June, we could see a slight increase to 0.2% month-over-month. Even still, the annualized inflation rate for the second Trump administration is only 1.4% including May’s data and will remain below 2.0% after June’s forecasted increase is included.”

In response to the May CPI report, President Donald Trump called on the Federal Reserve to cut interest rates by a full percentage point in a Wednesday post to Truth Social.