Economists point to tariffs as US prices edge up
As economists accused US President Donald Trump’s tariffs for increasing the cost of food, clothes and furniture, inflation rose to the highest level since February last month.
The US Department of Labor said in a statement on Tuesday, which increased by 2.4 percent annually in May, increased consumer prices by 2.7 percent in June compared to the previous year.
Monthly, after the previous month increased by 0.1 percent, prices increased by 0.3 percent from May to June.
Protective inflation creates a political challenge for Trump, who promises to reduce costs as a candidate, but deals with tariffs that have shaken businesses and consumers.
Trump insists that the US Federal Reserve President Jerome Powell is trying to force it to reduce short -term interest rates.
Nevertheless, the new inflation numbers are likely to leave the US Federal Reserve in their place.
Powell said he wanted to measure the economic impact of tariffs before reducing borrowing costs.
Excluding variable food and energy core inflation increased by 2.9 percent in June compared to the previous year, increased from 2.8 percent in May.
Monthly increased by 0.2 percent from May to June.
Economists closely monitor the basic prices, because they usually give a better idea of where inflation goes.
The increase in inflation was directed at higher prices.
The cost of gasoline increased by 1 percent from May to June, while grocery prices increased by 0.3 percent.
Device prices jumped for the third flat moon.
Toys, clothes, sound equipment, shoe and sports equipment were more expensive and all of them were imported intensively.
“You are starting to see the scattered parts of the Tariff Inflation Regime filter, Eric said Eric Winograd, the economist of the asset management firm Alliancebernstein.
Winograd also noted that housing costs, a large inflation drive since PANDEM, have continued to cool and actually keep a wider inflation.
The cost of rent increased by 3.8 percent in June, compared to a year ago, the smallest year increase since the end of 2021.
“Without the uncertainty of the tariff, the FED would have already been reduced, Win said Winograd.
Most of the economists, together with “questions, more or not, and the Fed is clearly thought”.
Last month, some products, including new and used cars, hotel rooms and flight tickets, became cheaper.
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