Patrick T. Fallon/AFP/File Photo by Patrick T. Fallon /AFP/FileArticle contentWashington (AFP) — US consumer inflation picked up in line with analyst expectations last month, government data showed Tuesday, as policymakers try to gauge how President Donald Trump’s ever-growing list of tariffs is affecting the economy.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentObservers are expecting to learn more about the effects of Trump’s duties over the summer months, meaning June’s data marks the start in a series of closely-watched figures — particularly as officials mull changes to interest rates as well.Article contentArticle contentArticle contentThe consumer price index (CPI) was up 2.7 percent from a year ago in June, rising from the 2.4 percent figure in May as energy costs rose, said the Department of Labor.Article contentOther areas that saw cost increases included household furnishings and apparel, both segments that experts are eyeing for signs of cost hikes after Trump’s sweeping tariffs this year.Article contentWhile Trump imposed a 10 percent tariff on almost all trading partners in April and separately slapped steeper duties on imports of steel, aluminum and autos, US officials have pushed back against warnings that these could spark price increases.Article contentEconomists caution that tariff hikes could fuel inflation and weigh on economic growth, but US Treasury Secretary Scott Bessent has labeled such expectations “tariff derangement syndrome.”Article contentCPI rose 0.3 percent in June from the previous month, an uptick from the 0.1 percent increase in May as well.Article contentArticle contentExcluding the volatile food and energy segments, CPI climbed 0.2 percent on-month, picking up from May too.Article contentArticle contentCompared with a year ago, “core” CPI was up 2.9 percent in June.Article contentEven if headline inflation figures show no “meaningful” surge because of tariffs alone, Nationwide economist Oren Klachkin warned it may be too soon to see their full impact just yet.Article contentBusinesses have been trying to hold off consumer price hikes through a range of actions, from eating into their own margins to trying to share costs with their suppliers, he said.Article contentBut it remains to be seen how long they can do this.Article contentThere could be a bigger impact over the summer, Klachkin added.Article contentFor now, he is looking “under the surface” at components most exposed to Trump’s tariffs, such as furnishings, recreational goods and cellphones, to discern their effects.Article contentBesides steep tariffs that have already taken effect, Trump has also threatened even higher levels on dozens of key trading partners including the European Union, India, Japan and South Korea if they do not strike deals to avert these elevated levels.Article contentHe has also opened doors to further levies on sector-specific imports ranging from semiconductors to pharmaceuticals, injecting more uncertainty in the global economy and worries of supply chain snags.Article content© 2025 AFPArticle content
US consumer inflation accelerates as tariff scrutiny grows
