U.S. consumer prices rose year-on-year by by 2.4% in May, slower than anticipated

U.S. consumer prices rose at a slower-than-anticipated annualized pace in May, even as concerns swirled around the potential impact of President Donald Trump’s aggressive tariff agenda on inflation. The Labor Department’s consumer price index increased by 2.4% year-over-year last month, accelerating from 2.3% in April but cooler than expectations of 2.5%. On a monthly basis, the measure eased to 0.1%.

Economists had projected that the gauge would match April’s reading of 0.2%. An uptick in shelter costs underpinned much of May’s increase, although this was offset by falling gasoline prices that dragged energy expenses down 1%, the Bureau of Labor Statistics said in a statement.

EIA Crude Oil Inventories Show Slight Recovery; Demand Still Strong

US Energy Information Administration’s (EIA) Crude Oil Inventories report, a key indicator of the balance between supply and demand in the US oil market, showed a decrease of 3.644 million barrels for the week. This figure represents a slight recovery from the previous week’s decline, but still indicates a robust demand for crude oil.

The latest decrease in inventories was less than the forecasted drop of 2.4 million barrels. This suggests that demand for crude oil remains strong, but not as strong as analysts had predicted. Nevertheless, the decrease in inventories is still a bullish sign for crude prices, as it indicates that demand is outstripping supply.

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Source: HDFC Securities Prime Research