Summary
US inflation increased in June as tariffs on imports raised prices for items like clothing and coffee. Consumer prices climbed by 2.7% over the year, up from 2.4% in May, driven by higher energy and housing costs.
Key Facts
- Consumer prices went up by 2.7% from June last year, compared to a 2.4% increase the previous month.
- The increase in inflation was the fastest seen since February.
- Tariffs on imports, which are taxes on goods brought into the country, contributed to rising prices.
- Coffee and citrus fruit prices rose by 2.2% and 2.3%, respectively, from May to June.
- Tariffs led to increased prices in some areas, such as toys, appliances, and clothing.
- Prices for new and used cars, airfare, and hotel bookings decreased, balancing out some of the overall price increases.
- President Trump imposed a 10% tax on most imported goods, and plans to raise tariffs from 1 August.
- The White House believes tariffs will protect US businesses, but most economists warn they may result in higher consumer prices.
