US inflation rises for first time in 5 months as tariff costs ripple through economy
The post US inflation rises for first time in 5 months as tariff costs ripple through economy appeared on BitcoinEthereumNews.com. After a prolonged stretch of subdued inflation, US consumer prices peaked in June as businesses began passing on the rising costs of imported goods affected by tariffs. According to a Bloomberg survey of economists, the core Consumer Price Index (CPI)—which excludes food and energy—rose 0.3% last month, marking the largest monthly gain since January. This follows a modest 0.1% increase in May. The annualized core inflation rate is expected to accelerate to 2.9%, its first pickup since the start of the year. While this suggests a slight pass-through of increased import duties, most economists anticipate inflation will gather steam over the coming months, despite retailers’ reluctance to burden consumers who are already tightening their wallets amid a cooling labor market. Fed holds firm as retail sales limp and tariff pressures linger Retail sales data due Thursday is projected to show only marginal growth in June, after two consecutive monthly declines. This will offer deeper insight into consumer behavior and help refine second-quarter GDP estimates. Though consumer spending has moderated, Federal Reserve officials remain cautious about cutting interest rates—their concern: persistent inflation risks tied to tariffs. The next policy meeting is scheduled for July 29-30. Economists at Bloomberg—including Estelle Ou, Stuart Paul, Eliza Winger, and Chris G. Collins—predict that inflation trends in June will mirror May’s: limited tariff-related price increases in goods, offset by continued weakness in services. Web-scraped data shows firmness in items like appliances and furniture, but softness in categories like airfares and used vehicles. Global inflation pulse quickens as central banks brace for tariff fallout Global markets are also waking up to changing inflation trends. In Canada, June inflation figures will be key before the Bank of Canada’s rate decision on July 30. And in China this week, there will be data on gross domestic product as well…
The post US inflation rises for first time in 5 months as tariff costs ripple through economy appeared on BitcoinEthereumNews.com.
After a prolonged stretch of subdued inflation, US consumer prices peaked in June as businesses began passing on the rising costs of imported goods affected by tariffs. According to a Bloomberg survey of economists, the core Consumer Price Index (CPI)—which excludes food and energy—rose 0.3% last month, marking the largest monthly gain since January. This follows a modest 0.1% increase in May. The annualized core inflation rate is expected to accelerate to 2.9%, its first pickup since the start of the year. While this suggests a slight pass-through of increased import duties, most economists anticipate inflation will gather steam over the coming months, despite retailers’ reluctance to burden consumers who are already tightening their wallets amid a cooling labor market. Fed holds firm as retail sales limp and tariff pressures linger Retail sales data due Thursday is projected to show only marginal growth in June, after two consecutive monthly declines. This will offer deeper insight into consumer behavior and help refine second-quarter GDP estimates. Though consumer spending has moderated, Federal Reserve officials remain cautious about cutting interest rates—their concern: persistent inflation risks tied to tariffs. The next policy meeting is scheduled for July 29-30. Economists at Bloomberg—including Estelle Ou, Stuart Paul, Eliza Winger, and Chris G. Collins—predict that inflation trends in June will mirror May’s: limited tariff-related price increases in goods, offset by continued weakness in services. Web-scraped data shows firmness in items like appliances and furniture, but softness in categories like airfares and used vehicles. Global inflation pulse quickens as central banks brace for tariff fallout Global markets are also waking up to changing inflation trends. In Canada, June inflation figures will be key before the Bank of Canada’s rate decision on July 30. And in China this week, there will be data on gross domestic product as well…
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