Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month

The Federal Reserve is widely expected to hold interest rates steady next week, with investors focused on new central bank projections that will show how much weight policymakers are putting on recent soft data and how much risk they attach to unresolved trade and budget issues.

Consumer prices rose 2.4% over the year, and the month-over-month increase was lower than expected.

Forecasters say underlying US inflation likely picked up in May, reflecting a modest impact from tariff pass-through for goods that are mostly imported, while some services like airfares saw smaller price gains or outright declines.

US stocks open down after Trump raised tariff tensions by promising unilateral tariff rates within two weeks. Boeing shares fall after a deadly crash.

US inflation was much softer than expected in May with little evidence of tariff-induced price hikes so far. Click to read.

The University of Michigan’s closely watched Surveys of Consumers showed across-the-board rebounds from previously dour readings.

Inflation was more moderate than economists anticipated in May on fears of President Donald Trump’s tariffs raising prices on a wide range of products.

Still, survey results show “consumers remain guarded and concerned about the trajectory of the economy,” a University of Michigan economist said.

Consumer sentiment has risen so far in June as the swirl of concerns related to President Donald Trump's tariffs have chilled.

Live Updates Live Coverage Updates appear automatically as they are published. Jamie Dimon's Sour Outlook 10:15 am by Gerelyn Terzo JPMorgan CEO Jamie Dimon remains unconvinced by any signs of a growing economy,

Wall Street's main indexes nudged higher on Wednesday, as a cooler-than-expected inflation report calmed concerns around tariff-driven price pressures and fanned expectations for interest rate cuts. Data showed consumer prices increased only marginally in May,