WASHINGTON, June 27, 2025 (BSS/AFP) - The US Federal Reserve's preferred measure of inflation edged up in May, government data showed Friday, with policymakers expecting to see the effects of President Donald Trump's tariffs this year in the coming months.

The personal consumption expenditures (PCE) price index climbed 2.3 percent last month from a year ago, the Commerce Department said in a report.

This was in line with analyst expectations and a slight acceleration from April's 2.2 percent increase.

But excluding the volatile food and energy sectors, the PCE price index was up 2.7 percent, rising from April's 2.6 percent uptick, the report showed.

While Trump has imposed sweeping tariffs on most US trading partners since returning to the White House in January -- alongside higher rates on imports of steel, aluminum and autos -- these have had a muted effect so far on inflation.

This is partly because he held off or postponed some of his harshest salvos, while businesses are still running through inventory they stockpiled in anticipation of the levies.

But central bank officials have said they expect to learn more about the impact of tariffs over the summer, meaning they will be scrutinizing data in the coming months.

Between April and May, the PCE price index was up 0.1 percent, the report showed.

As a July deadline approaches for higher tariff rates to kick in on dozens of economies, all eyes are also on whether countries can reach lasting trade deals with Washington to ease the effects of tariffs.