Recent reports indicate that US inflation remains subdued, with the Consumer Price Index (CPI) rising only 0.1% in May from the previous month, less than economists expected. The annual inflation rate stands at 2.4%, with core inflation (excluding food and energy) at 2.8%. Despite President Trump's tariffs aimed at increasing prices, their impact has so far been limited, with some key items like energy and vehicles experiencing price declines. Economists note that many businesses have been offsetting potential tariff effects by using existing inventories and delaying price hikes. Market indicators show a resilient economy, with stock prices near record highs and strong tax receipts, even as trade tensions with China persist. Analysts caution that tariff-driven inflation might still materialize in the coming months as inventories deplete and supply chains adjust. Overall, the current data suggests that the US economy has so far absorbed the shocks of tariffs without significant inflationary pressures.