Inflation Jumps in June Due to Trump's Tariffs Impact

Consumer prices rose 2.7% in June compared to a year ago due to President Donald Trump's tariff policy. Some retailers may pass tax burden to shoppers. The reading matched economists' expectations. Inflation accelerated from 2.4% in May but remained below 3% in January.

Egg prices rose 27% year-over-year in June, slower than May's 41% growth. Under Trump, inflation has defied predictions, boosting economic performance. Trump praised the reduction of inflation at the White House.

Price increases have exceeded the Federal Reserve's 2% target. Analysts predict further inflation due to tariffs, with importers passing costs to shoppers. Major retailers like Walmart and Best Buy warned of price hikes due to Trump's levies.

The Fed forecasts rising inflation, expecting the personal consumption expenditures index to reach 3% by the end of 2025. The Fed has kept interest rates steady to assess tariff impacts. Powell stated tariffs could raise prices and impact economic activity.

National Economic Council Director Kevin Hassett criticized Fed's concerns about tariff-related inflation. Trump has criticized the Fed for not lowering rates. The Fed's next meeting is on July 29 and 30, with a 95% chance of rates remaining unchanged.

According to the source: ABC News - Breaking News, Latest News and Videos.