Consumer prices were on the move in June, climbing 0.3% for the month, the Bureau of Labor Statistics reported Tuesday. That brings the 12-month inflation rate to 2.7%, keeping it above the Federal Reserve’s 2% target.
“Core” inflation, which excludes food and energy prices, rose 0.2% for the month, pushing the annual rate to 2.9%. The reading comes as President Donald Trump’s tariffs increasingly leave a bigger mark on the US economy—though how much of a mark they left on inflation depends on who you ask.
Prices on new vehicles, which will likely see a tariff impact, fell 0.3% from May, with used car and truck prices falling 0.7%. But other categories expected to be hurt by tariffs rose. Apparel prices climbed 0.4% month over month, while household furnishings jumped 1%.
“Tariffs are starting to bite,” Heather Long, chief economist at Navy Federal Credit Union, told CNN. “It wasn’t as bad as expected, but you can see it in the data.”
Others, however, stress that we’re still waiting for the “aha” moment.
“It’s really hard to point to this report or any details in the report and say, ‘Aha! See what’s happened to prices because of tariffs,’” Dan North, senior economist at Allianz Trade North America, told CNBC. “You get these pretty massive tariff increases. It’s bound to pass through to the consumers, and I still think it will, but it’s not in this report so far.”
News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.