Despite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report. While this report reflected consumer prices after Liberation Day, it showed little sign of tariff impact as most reciprocal tariffs were paused for 90 days and many businesses had frontloaded imports ahead of tariffs. This preemptive action contributed a drag on the first quarter GDP growth. Additionally, the Bureau reduced its CPI collection sample starting in April due to staffing shortages, raising potential data quality concerns. …Meanwhile, housing inflation remains elevated, though it continues to ease gradually. …A large portion of the “core” CPI is the housing shelter index, which increased 3.9% over the year, the lowest reading since November 2021.