The annual inflation rate in the US likely accelerated for the first time in four months, rising to 2.5% in May 2025 from 2.3% in April, the lowest level since February 2021, amid the early impact of President Trump’s new tariffs. On a monthly basis, the CPI is expected to increase by 0.2%, matching April’s gain, driven primarily by rising prices for goods such as furniture, apparel, and auto parts, as businesses begin passing on tariff-related costs to consumers. Meanwhile, annual core inflation which excludes volatile food and energy prices, is projected to edge up to 2.9% from 2.8% in both April and March, the lowest reading since 2021. The monthly core CPI is anticipated to rise by 0.3%, up from 0.2% in April, marking the highest monthly increase in four months.