Daily Update — May 16, 2025
US Inflation Dips; Environmental Permitting Limiting AI Growth; and Financing Clean Energy
Today is Friday, May 16, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Economy
US inflation dips to lowest level since 2021 as tariffs loom
The US consumer price index, a key indicator of inflation, is rising at its slowest pace in over four years, with a year-over-year increase of 2.3% reported for April. This marks the third consecutive month of declining inflation and represents the smallest increase since February 2021. Core consumer price inflation, which excludes the more volatile categories of energy and food, increased 2.8% year over year, remaining relatively stable compared to the previous month.
Despite this slowdown, economists warned that consumers may soon feel the effects of President Donald Trump’s tariffs. While factors such as cheaper oil and a significant drop in grocery prices have contributed to the cooling of inflation in April, other costs, particularly in housing and services, continue to rise. Some of the pricing relief observed may be attributed to retailers clearing out inventory before the tariffs take effect, suggesting that the current data may not indicate a significant turning point for the US economy.
Artificial Intelligence
AI sector frets that environmental permitting hinders power generation growth
Microsoft and other leaders in AI are advocating for reforms to environmental permitting processes under the Trump administration to expedite the development of new power generation resources for the industry. During a May 8 Senate hearing, Microsoft President Brad Smith highlighted that the primary concern is the lengthy permitting process for wetlands, which is managed by the US Army Corps of Engineers. Smith noted that while state and local permits can typically be secured in under a year, the federal wetlands permit can take up to two years, significantly delaying infrastructure projects.
The executive said that resolving the wetlands permitting issue could greatly accelerate progress in the US’ electricity infrastructure and pointed out that the Biden and Trump administrations have recognized this challenge.
Energy Transition & Sustainability
Financing clean energy in a time of volatility
In this episode of the “Energy Evolution” podcast, host Taylor Kuykendall interviews Jonathan Silver, chair of the Global Climate Council at Apollo Global Management and co-founder of advisory firm Multiplier. Silver, who was executive director of the US Energy Department's Loan Programs Office during the Obama administration, shared insights on the current clean energy financing landscape and discussed his work with sustainability-focused startups.
Silver emphasized the importance of helping early-stage companies connect with customers and navigate the complexities of capital raising and exit strategies. Silver noted substantial changes in clean energy policies following the latest presidential transition, but said that while regulatory environments may fluctuate, the momentum for clean technology is undeniable and irreversible.
Get extensive coverage of clean energy technologies, supply chains and procurement solutions with S&P Global Commodity Insights’ Clean Energy Technology Solutions.
In case you missed it
- OPEC revised down its forecasts for non-OPEC+ crude supply growth by 100,000 b/d in 2025 and 2026.
- China's plans to reduce its annual crude steel output for 2025 are progressing, but it is uncertain if mills will be able to adhere to these cuts due to the tariff pause with the US.
- The global oil market could be heading for a shallower demand shock from electric vehicles amid new trade uncertainties and stalling European uptake.
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