The U.S. economy has been full of surprises since the Federal Reserve started rapidly raising interest rates to quell inflation back in 2022. The latest shocker might just be that the Trump administration’s tariffs haven’t pushed up inflation more.

Months into the rollout of President Trump’s slew of tariffs, consumers are making spending decisions in a haze of confusion about whether higher prices are the result of levies, general inflation or companies simply padding their profit margins.

Inflation ticked slightly higher in May, rising 2.4%, in line with expectations, according to the U.S. Consumer Price Index released Wednesday. Prices rose 0.1 percent for the month, according to the Bureau of Labor Statistics. The month-over-month increase is less than expected.

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.

Americans are growing increasingly concerned about the effect tariffs will have on their finances. Look at their tariff-related fears and how to address them.

Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month

U.S. inflation likely picked up a bit last month as President Donald Trump’s tariffs start to bite, but lower prices for gas and possibly for air fares and used cars may limit the overall increase