US inflation rises to 2.4% amid Trump tariffs
In May, US inflation nudged up to 2.4% compared to last year, mainly because groceries and eating out cost more, plus earlier tariffs have been a factor in making things pricier. The core inflation rate—what you get when you leave out food and energy—stayed stuck at 2.8%, which is above what the Federal Reserve wants.
What does this mean for interest rates?
This matters because the Fed uses these numbers to decide on interest rates, which can affect everything from student loans to credit cards. With inflation staying high, it's less likely we'll see lower rates anytime soon—even though some policymakers are pushing for it.
What is Consumer Price Index (CPI)?
The Consumer Price Index (CPI) tracks how much a typical "basket" of goods and services costs over time—think groceries, rent, clothes. It's one of the main ways we measure how quickly prices are rising or falling in everyday life.