Consumer sentiment soured in a preliminary reading for August, and expectations for inflation increased, both worrying signs for President Donald Trump as he forges ahead with his tariff agenda. Consumer sentiment fell to 58.

Key Takeaways Consumers felt worse about the economy in August as a closely-followed survey showed increased worries about inflation and the labor market.It’s the first time in four months that consumer sentiment has declined.

Inflation expectations for a year from now increased to an annual rate of 4.9% from 4.5% in July. According to the consumer price index, inflation is currently running at a 2.7% pace, but many items have been rising at a rate higher than that.