Inflation for the 12 months ending in June was reported at 2.7%, aligned with expectations. Key categories such as clothing, furniture, and leisure showed notable price increases due to tariff impacts. Core inflation, excluding volatile food and energy prices, rose to 2.9%. Overall consumer prices indicated a dramatic shift and raised concerns regarding the future trajectory of inflation amidst uncertainty surrounding tariffs. The Federal Reserve is monitoring these trends closely, anticipating that any inflation spikes may be temporary but may not act until more data becomes available.
Consumer prices rose in June at the level most economists expected, as the effects of President Donald Trump's signature tariff policy began to worm their way through the economy.
The latest report only captures part of the final impact that tariffs might have on the economy, indicating potential for ongoing price increases.
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