Inflation was tame in May but President Trump's tariff policy may cause consumer prices to rise noticeably heading into summer, economists said.

The one-year inflation outlook took a substantial dip, down to 3.2% — a 0.4 percentage point decrease from April.

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

The consumer price index was expected to rise 0.2% in May, with a 12-month inflation rate of 2.4%.

Annualized inflation hit 2.4% in May, up from 2.3% in April, as Trump pushes ahead with controversial trade plans

Higher prices for some items were offset by declines in other areas, such as petrol, airfares and clothing.

Inflation was tame in May but President Trump's tariff policy may cause consumer prices to rise noticeably heading into summer, economists said.

President Donald Trump's tariffs have yet to show up in any of the traditional data points measuring inflation.