Inflation Was 2.7% In June—As Trump’s Tariffs Raise Prices
The post Inflation Was 2.7% In June—As Trump’s Tariffs Raise Prices appeared on BitcoinEthereumNews.com. Topline Inflation was higher last month than analysts projected, an apparent sign President Donald Trump’s tariffs have started raising prices for American consumers, as one economist said “meaningfully larger” increases are expected this year. One economist said “meaningfully larger increases” to consumer prices are expected amid Trump’s … More tariffs. Getty Images Key Facts Consumer prices were up 2.7% last month from June 2024, and rose 0.3% between May and June, the Bureau of Labor Statistics reported Tuesday, above average analyst estimates of 2.6%, according to FactSet. Core consumer prices, a measurement excluding the more volatile food and energy categories, rose 2.9% year-over-year and 0.2% from May to June, below analyst projections for a 3% annual increase. What To Watch For Whether the Federal Reserve opts to lower interest rates this year. During the Federal Open Market Committee’s meeting in June, “most” of the Fed’s staff said they believed the central bank would lower rates, while a “couple” expressed openness to cuts in July, according to minutes released earlier this month. “Most” policymakers questioned the impacts of President Donald Trump’s tariffs, however, as they said tariffs could have “more persistent effects on inflation” and cause more restrictive monetary policy. The Fed’s policy-setting committee will meet again July 30, though the implied odds they vote to ease interest rates are below 5%, according to CME’s FedWatch Tool. Key Background Economists have warned Trump’s wide-reaching tariffs on U.S. trade partners would likely raise prices for Americans this year. Trump has paused his “Liberation Day” tariffs until Aug. 1, after recently announcing 30% tariffs on the European Union and Mexico, among other levies. Analysts with UBS expect core CPI inflation will hit 3.9% by the end of the year, matching the latest peak set in January 2024. Inflation was mild as Trump’s tariffs…
The post Inflation Was 2.7% In June—As Trump’s Tariffs Raise Prices appeared on BitcoinEthereumNews.com.
Topline Inflation was higher last month than analysts projected, an apparent sign President Donald Trump’s tariffs have started raising prices for American consumers, as one economist said “meaningfully larger” increases are expected this year. One economist said “meaningfully larger increases” to consumer prices are expected amid Trump’s … More tariffs. Getty Images Key Facts Consumer prices were up 2.7% last month from June 2024, and rose 0.3% between May and June, the Bureau of Labor Statistics reported Tuesday, above average analyst estimates of 2.6%, according to FactSet. Core consumer prices, a measurement excluding the more volatile food and energy categories, rose 2.9% year-over-year and 0.2% from May to June, below analyst projections for a 3% annual increase. What To Watch For Whether the Federal Reserve opts to lower interest rates this year. During the Federal Open Market Committee’s meeting in June, “most” of the Fed’s staff said they believed the central bank would lower rates, while a “couple” expressed openness to cuts in July, according to minutes released earlier this month. “Most” policymakers questioned the impacts of President Donald Trump’s tariffs, however, as they said tariffs could have “more persistent effects on inflation” and cause more restrictive monetary policy. The Fed’s policy-setting committee will meet again July 30, though the implied odds they vote to ease interest rates are below 5%, according to CME’s FedWatch Tool. Key Background Economists have warned Trump’s wide-reaching tariffs on U.S. trade partners would likely raise prices for Americans this year. Trump has paused his “Liberation Day” tariffs until Aug. 1, after recently announcing 30% tariffs on the European Union and Mexico, among other levies. Analysts with UBS expect core CPI inflation will hit 3.9% by the end of the year, matching the latest peak set in January 2024. Inflation was mild as Trump’s tariffs…
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