Summary
Inflation in the United States increased last month, reaching the highest point since February due to tariffs that have raised costs for items like furniture and clothing. The Labor Department reported that consumer prices rose by 2.7% in June compared to the previous year, and by 0.3% from May to June. These changes create political challenges as they may influence the Federal Reserve's decisions on interest rates.
Key Facts
- U.S. inflation hit its highest level since February due to increased tariffs.
- Consumer prices increased by 2.7% in June from a year ago.
- Monthly inflation rose by 0.3% from May to June.
- Higher prices were noted in gasoline, groceries, appliances, and imported goods.
- Core inflation, excluding food and energy, was up 2.9% in June from a year earlier.
- President Trump has imposed various tariffs, including on imports from China and cars.
- The Federal Reserve may keep interest rates steady while evaluating the economic impact.
- Tariffs have been suggested to influence the Fed's reluctance to reduce borrowing costs.
