The Consumer Prices Index for May came in lower than economists had forecast. I thought the monthly increase in the CPI would be held down by declines in gas prices and airline fares. “ In May, some of the tariff inflation may be offset by a drop in gas prices nationwide and airline prices and Used Car prices.” Gasoline prices fell -2.6% in May and are down 12% from a year ago. Airline fares dropped -2.7% and are 7% below where they were in May 2024. We know that companies acquired inventory in the first quarter before tariffs would increase prices. This is why tariffs didn’t add much to...
