US Inflation Rose In June As Trump’s Tariffs Hiked Prices
US inflation rose again in June to its highest level in four months, as President Donald Trump’s tariffs began driving up consumer prices. According to Consumer Price Index data released by the Bureau of Labor Statistics, consumer prices increased 0.3% in June, pushing the annual inflation rate to 2.7%. “Core†inflation, which excludes the more volatile energy and food categories, also edged higher, rising from 2.8% in May to 2.9% in June. While inflation had remained relatively stable through the spring, thanks in part to Trump’s 90-day pause on tariffs, prices began climbing again in May and continued into June. "While inventory front-running has mitigated the need to raise goods prices, it will become increasingly difficult for businesses to absorb higher import duties as pre-tariff stockpiles dwindle,†Senior Economist at Wells Fargo, Sarah House, said. Economists expect prices to increase further in the coming months, especially in light of Trump’s renewed tariff threats against the European Union and other trade partners. Trump recently announced a 30% tariff on goods imported from the EU, which is set to take effect on August 1, 2025. However, it remains uncertain whether the tariffs will be fully implemented, given his history of levying high import taxes and later retreating. Despite the recent rise, inflation remains well below the highs seen three years ago, when price increases peaked at 9%.
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Inflation rose last month to its highest level in four months as the cost of gas, food, and groceries rose, reversing several months of cooling price pressures.
