The tariff-driven US inflation that economists feared begins to emerge

Published: Tuesday, July 15, 2025 at 2:49 pm

Inflation Climbs, Raising Concerns Over Tariffs

Washington, D.C. - Inflation in the United States rose in June to its highest level since February, according to the latest data released by the Labor Department. Consumer prices increased by 2.7% compared to a year earlier, up from 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June.

The increase in inflation has been attributed to rising costs across various sectors. Gasoline prices rose 1% from May to June, while grocery prices increased by 0.3%. Additionally, appliance prices have jumped for the third consecutive month, and prices for imported goods like toys, clothing, and audio equipment have also increased.

Economists are closely monitoring core inflation, which excludes volatile food and energy prices. Core inflation rose 2.9% in June compared to a year earlier, up from 2.8% in May.

The rise in inflation poses a political challenge for President Donald Trump, who promised to lower costs during his campaign. The administration has pushed back on claims that the report shows a negative impact from tariffs. Democratic lawmakers, however, have warned that Trump's tariffs would push up inflation.

The Federal Reserve is now facing a complex situation. The central bank is under pressure from the White House to cut interest rates. However, the recent inflation data may make it more likely that the Fed will keep rates unchanged at its next meeting.

BNN's Perspective: The recent inflation data presents a complex economic picture. While the administration attempts to downplay the impact of tariffs, the data suggests a potential link between rising prices and trade policies. The Federal Reserve's response will be crucial in navigating this environment, balancing the need to control inflation with the potential for economic slowdown.

Keywords: inflation, tariffs, consumer prices, Federal Reserve, interest rates, economy, Trump, trade, prices, core inflation

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