Where is all the inflation that was supposed to arise from the Trump tariffs? So far there’s hardly been any whiff of big price increases. Just wait, economists insist. It’s coming.

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.

Despite widespread fears to the contrary, President Donald Trump’s tariffs have yet to show up in any of the traditional data points measuring inflation

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.

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

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

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

Wednesday’s inflation report won’t change much for the Federal Reserve because it will take several months of price data to convince officials that tariff-related risks to inflation won’t send up prices in a concerning fashion.