Inflation Trends - Inflation has significantly eased from its 2022 highs but remains above the 2% long-term goal [1] - Total PCE prices rose 23% over the 12 months ending in May, while core PCE prices increased by 26% [1] - Near-term inflation expectations have risen in recent months, as indicated by market and survey-based measures [1] Inflation Expectations - Surveys indicate tariffs as a driving factor for inflation [2] - Most measures of longer-term inflation expectations remain consistent with the 2% goal [2] - The median projection for total PCE inflation this year is 3%, higher than the March projection [2] - The median inflation projection falls to 24% in 2026 and 21% in 2027 [2]