{"id":37070,"date":"2025-07-31T14:45:06","date_gmt":"2025-07-31T14:45:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/37070\/"},"modified":"2025-07-31T14:45:06","modified_gmt":"2025-07-31T14:45:06","slug":"u-s-inflation-picks-up-in-june-as-tariff-pressures-sink-in","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/37070\/","title":{"rendered":"U.S. inflation picks up in June as tariff pressures sink in"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

The personal consumption expenditures price index rose 0.3% last month, the U.S. Commerce Department\u2019s Bureau of Economic Analysis said Thursday.PATRICK T. FALLON\/AFP\/Getty Images<\/p>\n

U.S. inflation increased in June as tariffs<\/a> on imports started raising the cost of some goods, supporting economists\u2019 expectations that price pressures would pick up in the second half of the year.<\/p>\n

The personal consumption expenditures (PCE) price index rose 0.3% last month after an upwardly revised 0.2% gain in May, the Commerce Department\u2019s Bureau of Economic Analysis said on Thursday. Economists polled by Reuters had forecast the PCE price index climbing 0.3% following a previously reported 0.1% rise in May. In the 12 months through June, the PCE price index advanced 2.6% after increasing 2.4% in May.<\/p>\n

The data was included in the advance gross domestic product report for the second quarter published on Wednesday, which showed inflation cooling, though remaining above the Federal Reserve\u2019s 2% target. Economists said businesses were still selling inventory accumulated before President Donald Trump\u2019s<\/a> sweeping import duties came into effect.<\/p>\n

They expected goods prices to rise in the second half, with businesses passing on the higher costs from import duties to consumers. Procter & Gamble PG-N<\/a> said this week it would raise prices on some products in the U.S. to offset tariff costs.<\/p>\n

Fed\u2019s reticence on rate cuts forces market to rethink outlook<\/a><\/p>\n

The U.S. central bank tracks the PCE price measures for monetary policy. The Fed on Wednesday left its benchmark interest rate<\/a> in the 4.25%-4.50% range, where it has been since December, resisting pressure from Trump to lower borrowing costs. Economists expect the Fed to resume easing monetary policy in September.<\/p>\n

Fed Chair Jerome Powell, responding to questions from reporters on the anticipated tariff-related price increases, said \u201ca reasonable base case is that these are one-time price effects,\u201d but added \u201cI think we\u2019ve learned that the process will probably be slower than expected\u201d and take time to fully understand.<\/p>\n

Excluding the volatile food and energy components, the PCE price index increased 0.3% last month after rising 0.2% in May. In the 12 months through June, the so-called core inflation advanced 2.8% after rising by the same margin in May.<\/p>\n

The BEA also reported that consumer spending, which accounts for more than two-thirds of economic activity, rose 0.3% in June after being unchanged in May. The data was also included in the advance GDP report, which showed consumer spending growing at a 1.4% annualized rate after almost stalling in the first quarter.<\/p>\n

In the second quarter, economic growth rebounded at a 3.0% rate, boosted by a sharp reduction in the trade deficit because of fewer imports relative to the record surge in the January-March quarter. The economy contracted at a 0.5% pace in the first three months of the year. <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: The personal consumption expenditures price index rose 0.3% last month, the U.S. Commerce…\n","protected":false},"author":2,"featured_media":37071,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-37070","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/37070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=37070"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/37070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/37071"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=37070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=37070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=37070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}