In June, annual inflation rose to 2.7%, marking the highest level since February. This increase was primarily due to rising housing costs and the prices of essential items like gas and groceries. Core inflation, excluding food and energy, reached 2.9%. Monthly, overall prices increased by 0.3%, while core prices rose by 0.2%. The tariffs imposed by President Trump particularly affected household furnishings, which saw a 1% monthly price increase. Additionally, the annual cost of rent increased by 3.8%, and food prices experienced modest gains.
"June's numbers mark a slight shift from May's cooler-than-expected inflation data, but it remains unclear if and when the U.S. economy will feel the true brunt of a slew of new tariffs."
"The impact of President Donald Trump's tariffs on foreign imports was most acutely felt in the category of household furnishings, which saw prices jump 1% month-over-month—the biggest increase since January 2022."
"It is worth noting that June's figures do not reflect the most recent round of tariff announcements, including a new copper tariff that could affect housing construction in the months ahead."
"As is typical, housing-termed 'shelter'-was the 'primary' monthly inflation driver, rising 0.2% from May to June—a sign of continued normalization."
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