Data released by the U.S. Bureau of Labor Statistics on the 15th shows that the U.S. Consumer Price Index (CPI) rose by 2.7% year-on-year in June, exceeding market expectations and marking the largest year-on-year increase since February.
This figure is also slightly higher than the broadly expected 2.6% in the market.
According to the data, excluding the more volatile food and energy prices, the core inflation rate in the U.S. in June increased by 2.9% year-on-year.
The Associated Press reports that the June CPI data indicate that tariff-induced inflation is beginning to emerge, and this data also makes it more likely that the Federal Reserve will maintain its current interest rates.
However, the White House refuted the view that the “June CPI data shows a negative impact from tariffs.” In a statement issued on the 15th, it pointed out that despite a 25% tariff on imported cars and steel and aluminum tariffs as high as 50%, new car prices in the United States still declined.
U.S. President Trump stated on social media that “prices in the U.S. are very low” and that the Federal Reserve should “cut rates now.”
Several analysts said they expect upward pressure on prices may intensify in the coming months. If the U.S. government’s recent threats to impose additional tariffs on multiple trading partners are implemented, the U.S. inflation situation in the second half of the year could become even more severe due to the ‘tariff effect.’