{"id":12024,"date":"2025-07-15T16:19:04","date_gmt":"2025-07-15T16:19:04","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/12024\/"},"modified":"2025-07-15T16:19:04","modified_gmt":"2025-07-15T16:19:04","slug":"us-inflation-heats-up-to-2-7-possible-sign-that-trump-tariffs-have-begun-to-sting","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/12024\/","title":{"rendered":"US inflation heats up to 2.7% \u2014 possible sign that Trump tariffs have begun to sting"},"content":{"rendered":"

US inflation ticked up in June in a possible sign that President Trump\u2019s tariffs are starting to sting.<\/p>\n

The Consumer Price Index rose 2.7% in June from the year before, matching economists\u2019 expectations but coming in above the\u00a0previous month\u2019s 2.4% reading<\/a>, the Bureau of Labor Statistics said Tuesday.<\/p>\n

Core CPI, which excludes volatile food and energy prices, gained 2.9% from a year earlier, above the previous month.<\/p>\n

On a month-to-month basis, headline inflation rose 0.3%, in line with forecasts but above the previous month\u2019s 0.1% jump.<\/p>\n

\u201cWhile it\u2019s a relief to see Tuesday\u2019s CPI in-line with expectations, it still showed that inflation was hotter in June than it was in May,\u201d Skyler Weinand, chief investment officer at Regan Capital, said in a note Tuesday.<\/p>\n

\"InteriorUS inflation rose in line with forecasts in June. Stephen Yang<\/p>\n

\u201cWe are now even further from the Fed\u2019s 2% target, which means the Fed is in no position to cut interest rates until at least September.\u201d<\/p>\n

Trump has put Chair Jerome Powell on blast for not slashing interest rates, and a growing number of officials have\u00a0joined in the call for a rate cut\u00a0<\/a>as soon as July.<\/p>\n

But policymakers are still widely expected to stick to the target 4.25% to 4.5% range after their meeting later this month, according to CME FedWatch, which tracks Fed Funds futures prices.<\/p>\n

Consumer prices, prior to June\u2019s reading, had mostly been trending downward since January, shrugging off fears that tariffs could reheat inflation and slow economic growth.<\/p>\n

The indexes for used cars and trucks and new vehicles saw some of the most substantial declines in June, according to the Bureau of Labor Statistics.<\/p>\n<\/p>\n

\"DonaldFederal Reserve Chairman has resisted President Trump\u2019s calls to lower interest rates. REUTERS<\/p>\n

That came as a surprise for economists, who were calling for upticks in the auto prices\u2014 one of the sectors that is hardest hit by tariffs.<\/p>\n

Apparel prices, however, are also heavily influenced by tariffs, and jumped 0.4% in June.<\/p>\n

Household furnishings, another tariff-sensitive sector, rose 1%.<\/p>\n

Shelter prices ticked up just 0.2%, but they were the main contributor to the month\u2019s overall increase, according to the Bureau of Labor Statistics. The index rose 3.8% from the year before.<\/p>\n

Food prices rose 0.3% for the month with gains in both food at home and dining out. The sector rose 3% from a year earlier.<\/p>\n

Energy prices, meanwhile, reversed a 1% decline from the month before, rising 0.9% in June. The sector is still down from the year before.<\/p>\n

Medical care services grew 0.6% and transportation services inched up 0.2%.<\/p>\n

Airline fares fell 0.1% in June. It was one of the main sectors to fall last month as persistent economic uncertainty around Trump\u2019s trade war and geopolitical tensions fueled a dip in travel demand.<\/p>\n

Analysts have cautioned that it will take time for tariffs to fully work their way through the economy \u2013 which could mean a longer \u201cwait-and-see\u201d approach from the Fed.<\/p>\n

\u201cIf it\u2019s true that inflation is staying in check, then the Fed can go ahead and cut interest rates \u2013 potentially as early as September \u2013 but if subsequent reports show a different story, then the Fed is going to have to stay on hold even longer,\u201d Chris Zaccarelli, chief investment officer at Northlight Asset Management, said in a note Tuesday.<\/p>\n","protected":false},"excerpt":{"rendered":"US inflation ticked up in June in a possible sign that President Trump\u2019s tariffs are starting to sting.…\n","protected":false},"author":2,"featured_media":12025,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,2402,1052,759],"class_list":["post-12024","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-inflation","tag-prices","tag-tariffs"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/12024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=12024"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/12024\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/12025"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=12024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=12024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=12024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}