US Inflation Modulates, But Tariff Impact Remains Uncertain

May’s US inflation report showed a surprising calm: a 0.1% increase from April, below market predictions and sending stocks soaring. This unexpected moderation suggests easing inflationary pressures. However, this positive turn hides underlying uncertainties fueled by lingering tariffs introduced by the Trump administration. While the short-term impact of these tariffs remains unclear, economists warn that their long-term effects could trigger a significant surge in inflation, potentially reaching 4% by year’s end.