Figures this week are expected to show a pick-up in US inflation in May as the effects of President Donald Trump’s tariffs are beginning to appear in the data.
Economists polled by Reuters are forecasting a 2.5 per cent annual rise in consumer prices when the numbers are released on Wednesday, up from 2.3 per cent a month earlier. Core inflation, which strips out volatile food and energy prices, is also expected to show an acceleration to 2.9 per cent last month, from 2.8 per cent in April.
The inflation report is expected to be the first to substantially reflect the effects of Trump’s tariffs, which economists anticipate will add to price pressures.
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