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.

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 picked up a bit last month as higher prices for groceries and some imported goods were largely offset by cheaper gas, travel services, and rents.

Overall, though, the trend for inflation has been a steady decline toward the Federal Reserve’s 2% annual target. The Fed, however, is not expected to change interest rates when it meets next week.

UK households had been expecting inflation to slow over the coming year, according to a Bank of England survey that was conducted before the sudden jump in consumer prices reported last month.

U.S. equity funds witnessed the smallest weekly net disposal in four weeks in the week through June 11 as a smaller than expected rise in consumer prices in May, and a U.S. trade deal with China, eased investor worries.