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.” (RELATED: Most Voters See Economy As Strong Under Trump For The First Time In Years, Poll Says)
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.
“CPI JUST OUT. GREAT NUMBERS! FED SHOULD LOWER ONE FULL POINT,” Trump wrote in the social media post. “WOULD PAY MUCH LESS INTEREST ON DEBT COMING DUE. SO IMPORTANT!!!”
The CPI report comes after the U.S. economy added 139,000 nonfarm payroll jobs in May, slightly above economists’ expectations — while the unemployment rate remained unchanged at 4.2%, the BLS reported on June 6.
“Inflation fell again last month and came in well below expectations as President Trump has delivered on his promise to end Bidenflation,” CEO of the Job Creators Network Alfredo Ortiz wrote Wednesday in a statement in response to the May CPI report. “Now it’s past time for the Federal Reserve to follow Trump’s advice to cut interest rates and improve small business access to credit. Given these low inflation numbers, Chairman Powell should consider a 0.5% rate cut to provide the most support for Main Street and the broader economy. A significant rate cut combined with the historic tax relief in Republicans’ Big, Beautiful Bill will usher in the next American Golden Age.”
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