The inflation rate is inching higher, with Wall Street expecting tariffs to increase prices throughout the remainder of 2025.

Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.

President Trump told reporters this week that he would send letters to trading partners in the next week or two setting unilateral tariff rates. “At a certain point, we’re just going to send letters out.

U.S. economic growth is likely to "slow markedly" this year and next, due to tariffs and uncertainty under the Trump administration.

The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.

Prices of toys, car parts and major appliances jumped in the US last month, but the overall impact of Donald Trump's new tariffs on consumers remained relatively muted. Prices were up 2.4% in May compared with a year ago, up from a rate of 2.3% in April, the latest official inflation figures showed.

Reports on consumer and wholesale inflation headline the week’s economic data as tariff negotiations between the U.S. and China begin.

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 and an intensifying conflict in the Middle East.

The OECD said President Donald Trump's tariffs are hitting economic growth in the US and globally too, and warned of consequences for jobs and incomes.