By Lucia Mutikani WASHINGTON (Reuters) -U.S. consumer prices increased less than expected in May as cheaper gasoline partially offset higher rents, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs.

U.S. wholesale prices rose modestly last month from a year earlier, another sign that inflationary pressures remain mild. The Labor Department reported Thursday that its producer price index — which measures inflation before it its consumers — rose 2.

US consumer sentiment rose by the most since January 2024 as concerns about the economy eased and short-term inflation expectations showed a marked improvement.