U.S. Inflation Accelerated In June As Trump’s Tariffs Start To Bite

U.S. inflation rose in June to its highest level since February, with President Donald Trump’s sweeping tariffs pushing up prices for a wide range of consumer goods—including furniture, clothing, and appliances—Christopher Rugaber reported for the Associated Press (AP).

Core inflation—which excludes volatile food and energy prices—rose 2.9% in June from a year ago, up from 2.8% in May.

The Consumer Price Index rose 2.7% in June from a year earlier, up from 2.4% in May, according to data released by the Labor Department recently.

On a monthly basis, prices increased 0.3% from May to June, following a 0.1% rise the previous month. The latest spike presents a political challenge for Trump, who had pledged to lower costs during his re-election campaign.

The sharp inflation surge of 2022–2023 was the worst in four decades and deeply damaged public confidence in then-President Joe Biden’s economic management. Higher inflation now complicates Trump’s calls for the Federal Reserve to cut interest rates.

He has insisted on social media that “there is no inflation” and has demanded a cut in the central bank’s benchmark rate from 4.3% to around 3%.

Core inflation—which excludes volatile food and energy prices—rose 2.9% in June from a year ago, up from 2.8% in May.

On a monthly basis, it rose 0.2%. Economists monitor core inflation closely, as it provides a clearer picture of long-term trends. In June, gas prices rose 1% from the previous month, grocery prices increased 0.35%, and appliance prices jumped for the third consecutive month.