US Inflation Rises in June Due to Trump's Tariffs Impacting Prices
In June, US inflation increased as the effects of Donald Trump's tariffs began to reflect in consumer prices. The Consumer Price Index (CPI) rose to 2.7% annually, with core CPI reaching 2.9%. Prices of various goods like appliances, furniture, and food have gone up, indicating a trend of rising prices. Trump's threat of imposing higher tariffs on other trading partners adds uncertainty to the situation.
Inflation rose in June due to the impacts of Donald Trump’s tariffs showing in US prices. Business leaders had warned that the high rates of Trump’s tariffs would lead to price increases. Prices had been stable in the spring when many tariffs were paused, but started rising in May and continued in June.
Annual inflation increased to 2.7% in June from 2.4% in May, according to the Consumer Price Index (CPI). Core CPI, excluding energy and food prices, also rose slightly to 2.9% from 2.8% in May.
Prices of appliances, furniture, toys, and food went up. Food prices rose by 3%, with beef, coffee, and citrus fruit prices increasing. Although egg prices dropped in recent months, they are still significantly higher than last year.
Inflation is lower than in previous years but has been impacted by tariffs. Americans now face an average tariff rate of 18.7%, the highest since 1933, including tariffs on China, steel, aluminum, auto parts, and all imports.
Trump threatened the EU, Mexico, Canada, and Brazil with higher tariffs. If imposed, prices could rise further. Negotiations are ongoing, with Trump pushing back deadlines to September.
Trump called for the Federal Reserve to cut interest rates in response to the latest inflation news. However, the Fed is unlikely to adjust rates soon despite expectations of continued price increases.
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