U.S. inflation data for May will be released this week, with the Consumer Price Index (CPI) report due on Wednesday and the Producer Price Index (PPI) on Thursday. Economists estimate CPI inflation at 2.5% for May, up from 2.3% previously, and expect core CPI to rise 0.3% for the month and 2.9% on an annual basis, according to a Bloomberg survey. The increase in inflation is attributed in part to companies passing on higher import tariffs to consumers, particularly for merchandise. Major retailers such as Walmart, Target, and Costco have indicated they are attempting to minimize the impact by negotiating with suppliers, diversifying supply chains, and absorbing some costs, but some price increases are unavoidable. Other key data this week include initial jobless claims, which recently reached their highest level since October, and consumer sentiment. The May jobs report showed the U.S. economy added 139,000 jobs, with the unemployment rate holding at 4.2%. These reports will provide the Federal Reserve with important information ahead of its June 17-18 policy meeting, where it is widely expected to hold interest rates steady. Traders are pricing in nearly two 25-basis point cuts by year-end. The S&P 500 index closed above 6,000 for the first time since February and is up 2% year-to-date, now 2.3% below its record high. Equities have rebounded more than 20% since April 8, following declines linked to concerns over President Donald Trump's tariff policies. A 90-day pause on a wide array of tariffs is set to end July 8. Policy developments are also in focus, including a fiscal bill under review in the U.S. Senate that has led to a rift between President Trump and Tesla CEO Elon Musk. In addition to U.S. inflation data, the week features U.S.-China trade negotiations, China's May inflation data—which showed a 0.2% decline in CPI and a 3% drop in factory-gate prices—UK jobs and GDP data, and major corporate earnings reports from GameStop, Oracle, and Adobe. Apple's Worldwide Developers Conference is scheduled for Monday.