June 2025 CPI Inflation Report: Prices Rise Amid Trump's Tariffs Impact
Consumer prices increased in June, driven by President Donald Trump's tariffs affecting the U.S. economy. The consumer price index rose by 0.3% on the month, resulting in a 2.7% annual inflation rate, the highest since February. Core inflation, excluding food and energy prices, also saw a slight uptick. Despite mixed evidence on the impact of tariffs, some sectors like vehicle prices fell while apparel and household furnishings prices rose.
People shop at a grocery store in Brooklyn on May 13, 2025 in New York City. Spencer Platt | Getty Images
Consumer prices rose in June as President Donald Trump's tariffs began to slowly work their way through the U.S. economy. The consumer price index, a broad-based measure of goods and services costs, increased 0.3% on the month, putting the 12-month inflation rate at 2.7%, the Bureau of Labor Statistics reported Tuesday. The numbers were right in line with the Dow Jones consensus, though the annual rate is the highest since February. Excluding volatile food and energy prices, core inflation picked up 0.2% on the month, with the annual rate moving to 2.9%, with the annual rate in line with estimates. The monthly level was slightly below the outlook for a 0.3% gain.
Prior to June, inflation had been on a generally downward slope for the year, with headline CPI at a 3% annual rate back in January and progressing gradually slower in the subsequent months despite fears that Trump's trade war would drive prices higher. While the evidence in June was mixed on how much influence tariffs had over prices, there were signs that the duties are having an impact. Vehicle prices fell on the month, with prices on new vehicles down 0.3% and used car and trucks tumbling 0.7%. However, tariff-sensitive apparel prices increased 0.4%. Household furnishings, which also are influenced by tariffs, increased 1% for the month.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
