Inflation hit its highest point since February last month, driven by President Donald Trump’s broad tariffs, which have increased prices on goods such as furniture, clothing, and major appliances.
According to data released Tuesday by the Labor Department, consumer prices rose 2.7% in June compared to a year earlier — up from a 2.4% annual increase in May. On a month-to-month basis, prices climbed 0.3%, a notable jump from the 0.1% rise in May.
The acceleration in inflation presents a political dilemma for Trump, who campaigned on promises to reduce consumer costs but has since implemented aggressive tariffs that are fueling concern among both businesses and consumers. Despite Trump’s claims that inflation is no longer a concern, his trade policies have added upward pressure on prices — even as he continues to push the Federal Reserve to cut interest rates.
However, last month’s inflation uptick may discourage the Fed from making any immediate rate cuts. Chair Jerome Powell has indicated he prefers to wait and assess the full impact of the administration’s tariffs before adjusting monetary policy.
