U.S. INFLATION RISES 2.7% IN JUNE – Core inflation increased by 2.9%
The United States Consumer Price Index (CPI) rose by 2.7 percent in June from a year earlier, marking the largest increase since February, according to data released Tuesday by the Bureau of Labor Statistics.
The CPI figure is higher than general expectations and the average pace of 2.4 percent in the first five months. Analysts attributed the rise to increased tariffs on the country’s trading partners since U.S. President Donald Trump assumed his second term.
Core inflation, which excludes volatile food and energy prices and is considered a more accurate indicator of price pressures, also rose, increasing 2.9 percent from the same period last year.
Analysts believe this is only the initial effect of tariffs on domestic prices, and that intensified price pressures are expected in the coming months.
If the new round of tariffs threatened by Trump in his recent letters to leaders of dozens of countries — including major trading partners — takes effect on Aug. 1 as planned, inflation could worsen in the second half of the year.
