U.S. Inflation Rises in June Due to Tariffs
In June, U.S. inflation increased to its highest level since February, driven by President Trump's tariffs on goods like furniture and clothing. Consumer prices rose 2.7% from a year earlier, posing a challenge for Trump's promise to lower costs. The Federal Reserve may be hesitant to cut interest rates due to the inflation spike.
U.S. inflation reached its highest level since February due to President Donald Trump's tariffs, increasing the cost of various goods like furniture, clothing, and appliances. Consumer prices rose 2.7% in June compared to a year ago, up from 2.4% in May. This rise in inflation poses a challenge for Trump, who pledged to lower costs. The Federal Reserve may be reluctant to cut interest rates due to the heightened inflation.
Excluding food and energy, core inflation rose 2.9% in June from a year earlier. Gasoline, grocery, and appliance prices increased, along with other imported goods. Housing costs, a major inflation driver, have cooled down. Trump's tariffs on imports have contributed to the inflation surge.
Trump imposed tariffs on various imports, including steel, aluminum, goods from China, and cars. Grocery prices rose, and the administration placed duties on Mexican tomatoes. The Fed Chair faces pressure to cut rates, but the tariffs could complicate the situation. Some companies have raised prices in response to tariffs, while others have delayed increases.
According to the source: BNN Bloomberg.
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