US consumer prices rose by 2.7% in June, the highest since February, reflecting increased costs from tariffs on various goods. Monthly prices climbed 0.3% from May, following a 0.1% rise in the prior month. The inflation surge complicates political strategies for President Trump, who pledged to lower costs during his campaign. The Federal Reserve faces pressure regarding interest rates, with current levels maintained despite Trump's calls for reductions. Core inflation also rose, indicating persistent economic challenges. Economists monitor these rates closely as indicators of economic health.
Consumer prices rose 2.7 percent in June from a year earlier, the Labor Department said on Tuesday, up from an annual increase of 2.4 percent in May.
Higher inflation will also likely heighten the US Federal Reserve's reluctance to cut its short-term interest rate, as Trump is loudly demanding.
Worsening inflation poses a political challenge for Trump, who promised during last year's presidential campaign to immediately lower costs.
Trump has insisted repeatedly that there is no inflation, and because of that, the central bank should swiftly reduce its key interest rate from its current level.
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