Trump’s Tariffs Begin to Show in Inflation Data With CPI Up 0.3% In June

U.S. consumer prices rose 0.3% in June, the sharpest increase since January, according to Reuters. The increase was driven by higher costs for rental housing, gasoline, food, and tariff-sensitive goods, such as appliances and apparel. Core inflation, which excludes food and energy, also rose 0.2%, with notable increases in home furnishings, toys, and dental services. Economists say the effects of Trump’s new import tariffs, set to take effect August 1, are just beginning to appear in the data and will likely intensify in July and August. While services inflation remains moderate due to softening consumer demand and a cooling labor market, goods inflation is accelerating. The annual CPI rose 2.7%, while core CPI climbed 2.9%.