In June, reports indicated that U.S. consumer prices likely increased moderately in May, despite relatively cheaper gasoline. However, the Trump administration’s import tariffs probably began affecting other goods, potentially raising underlying inflation pressures. The Consumer Price Index report from the Labor Department suggested a rise in the core CPI, attributable to President Donald Trump’s import duties. Economists noted that May marked the start of tariff-related inflation readings that could last through year-end. The CPI likely increased 0.2% last month, with gasoline prices mostly lower due to concerns over global economic growth. Core CPI is forecast to have climbed 0.3%, the biggest gain since January. The Federal Reserve is expected to monitor the economic impact of these tariffs while maintaining its benchmark overnight interest rate. Concerns also arose regarding the Bureau of Labor Statistics’ resource constraints affecting CPI data collection in some cities. \n— new from Reuters
