US inflation rose to its highest level in four months in June, suggesting that the effects of US President Donald Trump’s tariffs are starting to show up in prices.
According to Labor Department statistics released Tuesday, the consumer price index increased by 0.3% for the month, putting the 12-month inflation rate at 2.7%.
So far, the levies have had a limited impact on inflation — a point Trump has repeatedly used to pressure Federal Reserve Chair Jerome Powell to lower interest rates — partly due to declines in both new and used vehicle prices, travel costs, as well as businesses stockpiling goods before tariffs took effect.
Still, with higher tariffs set to take effect in August, economists said the June inflation data isn’t enough to prompt the Fed to cut rates early.