US inflation jumped to 2.7% in June, up from 2.4% in May, as President Donald Trump’s tariffs began to ripple through the economy, pushing up prices on items ranging from coffee to clothing.
The latest data from the Labor Department shows the fastest pace of consumer price growth since February, driven primarily by rising energy and housing costs, including rent. However, tariff-related effects are starting to surface across several product categories.
Items like:
- Coffee rose 2.2%
- Citrus fruits climbed 2.3%
- Appliances were up 1.9%
- Toys increased 1.8%
- Clothing saw its first price gain in months at 0.4%
These increases are being attributed to companies passing tariff costs onto consumers. Still, overall inflation remained within expected ranges, with declines in car prices, airfare, and hotels helping balance the numbers.
“There is a trickle of what is likely tariff-induced inflation… This trickle is likely to gain momentum,” said Olu Sonola of Fitch Ratings.
The average effective tariff rate in the US has soared this year, as Trump imposed sweeping 10% import taxes, including higher duties on steel and vehicles. While some plans were paused, Trump recently renewed threats to raise tariffs from August 1.
Despite White House claims that foreign exporters will bear the cost, economists largely agree that American consumers are starting to feel the price pinch. Many companies had stockpiled goods earlier in the year, softening the initial impact.
The Federal Reserve remains cautious, resisting pressure from Trump to cut interest rates and opting instead to observe the longer-term effects of the tariffs before making a move.
Source: Wesleyannews.com
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