{"id":50292,"date":"2025-07-31T15:13:13","date_gmt":"2025-07-31T15:13:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/50292\/"},"modified":"2025-07-31T15:13:13","modified_gmt":"2025-07-31T15:13:13","slug":"key-us-inflation-gauge-rose-last-month-as-trumps-tariffs-lifted-goods-prices","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/50292\/","title":{"rendered":"Key US inflation gauge rose last month as Trump’s tariffs lifted goods prices"},"content":{"rendered":"

WASHINGTON — The Federal Reserve\u2019s preferred inflation gauge ticked higher last month in a sign that President Donald Trump\u2019s broad-based tariffs<\/a> are starting to lift prices for many goods. <\/p>\n

Prices rose 2.6% in June compared with a year ago, the Commerce Department said Thursday, up from an annual pace of 2.4% in May. Excluding the volatile food and energy categories, prices rose 2.8% in the past year, the same as the previous month, which was revised higher. The figures are above the Fed\u2019s 2% goal. <\/p>\n

The uptick in prices helps explain the central bank\u2019s reluctance to cut its key interest rate this week, despite repeated demands<\/a> from Trump that it do so. On Wednesday, the Fed left its key rate unchanged at 4.3%, and Chair Fed Powell suggested it could take months for the central bank to determine whether the import duties will cause just a one-time rise in prices or a more persistent increase in inflation. <\/p>\n

On a monthly basis, prices ticked up 0.3% from May to June, while core prices also rose 0.3%. Both figures are higher than consistent with the 2% target.<\/p>\n

The government’s measure of gas prices jumped 0.9% from May to June, while grocery costs rose 0.3%. Many longer-lasting goods that are heavily imported saw clear price increases, with furniture prices up 1.3% just last month, appliances up 1.9%, and computers up 1.4%. <\/p>\n

The cost of some services fell dramatically last month, offsetting the price pressures from goods. Air fares dropped 0.7% from May to June, while the cost of hotel rooms plunged 3.6% just in one month. <\/p>\n

Thursday’s report also showed that consumer spending rose 0.3% from May to June, a modest rise that suggests Americans are still spending cautiously. Adjusted for inflation, the increase was just 0.1%, the government said. <\/p>\n

Consumers have been cautious all year. On Wednesday, the government said the economy expanded at a 3% annual rate<\/a> in the second quarter, a solid showing but one that masked some red flags. Consumer spending, for example, rose at a lackluster 1.4% pace, after an even smaller gain of 0.5% in the first three months of the year. A sharp drop in imports in the April-June quarter, which followed a surge in the first quarter, provided a big lift to the government\u2019s calculation of U.S. gross domestic product.<\/p>\n

Earlier this month, the government reported that its more closely-watched consumer price index, its primary inflation measure, also ticked higher in June as the cost of heavily-imported items such as appliances, furniture, and toys increased. <\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON — The Federal Reserve\u2019s preferred inflation gauge ticked higher last month in a sign that President Donald…\n","protected":false},"author":2,"featured_media":50293,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[38889,23,966,28,793,2402,3139,3,795,21,19,22,20,25,24],"class_list":{"0":"post-50292","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-38889","9":"tag-america","10":"tag-article","11":"tag-business","12":"tag-general-news","13":"tag-inflation","14":"tag-international-trade","15":"tag-news","16":"tag-u-s-news","17":"tag-united-states","18":"tag-united-states-of-america","19":"tag-unitedstates","20":"tag-unitedstatesofamerica","21":"tag-us","22":"tag-usa"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/50292","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=50292"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/50292\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/50293"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=50292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=50292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=50292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}