U.S. inflation edged higher in June, with the consumer price index rising 2.7% year over year, according to the latest data from the Bureau of Labor Statistics. The increase follows a 2.4% annual rise in May and comes amid growing concerns about the inflationary effects of newly announced tariffs.
The monthly inflation report showed mixed signals. While gasoline prices remained relatively stable — up just 0.1% from May and down 8.3% compared to a year ago — grocery prices continued to rise. Food costs were up 0.3% for the month and 2.4% year over year, driven in part by a 5.6% surge in the meats, poultry, fish, and eggs category. Eggs, while still nearly 30% higher than a year ago, fell 7.4% from the previous month.
Housing costs, which make up the largest share of the CPI, climbed 0.2% for the month and 3.8% annually, contributing significantly to the overall inflation figure. Meanwhile, prices for new and used vehicles fell, with used cars and trucks down 0.7% and new vehicles dropping 0.3%. Airline fares also ticked lower, down 0.1%.
Core inflation — which excludes the more volatile food and energy categories — rose 2.9% from a year ago, signaling underlying price pressures remain elevated.
Economists are closely watching the impact of the Trump administration’s trade policies. Tariffs on goods from the European Union and Mexico, set to take effect on August 1, are expected to further increase consumer prices in the second half of the year. Additional tariff threats targeting Russia’s trade partners could add to that pressure.
Source: CNBC, Consumer Price Index