Since February, US inflation has rushed to the highest level, which was partially driven by President Donald Trump’s tariffs, which increases the costs of everyday items such as furniture, clothing and large appliances according to new government data.
The Ministry of Labor announced on Tuesday that consumer prices increased by 2.7% in June compared to the previous year, which is 2.4% increase in May. Inflation of the monthly month increased by 0.3% and accelerated 0.1% of the previous month.
Tariffs rising costs
The increase comes when Trump’s administration deposited wide tariffs – including a blanket of 10% collection for all imports, 50% of steel and aluminum duties, 30% on Chinese goods and 25% on imported cars. The President recently threatened the new 30% tariff on the imports of the European Union since 1 August.
Prices have risen in a number of goods: gasoline jumped by 1% from May to June, food prices increased by 0.35% and the prices of the equipment climbed to the third direct month.
Several companies have confirmed that they are increasing prices due to their duties. Walmart, Nike and Mitsubishi announced a targeted or average price increase, while others delayed with increasing stock at the beginning of the year.
Political and political fallout
The increase in inflation is a political challenge for President Trump, who led the campaign for reducing consumer costs. It also complicates efforts to pressure the federal reserve to reduce interest rates.
While Trump repeatedly claimed that there was no “inflation” and demanded the Fed to reduce its benchmark rate from 4.3% to 3%, Fed Jerome Powell signaled caution. Powell said that the central bank wants to see how the economy responds to tariffs that at the same time increase prices and threaten to slow growth.
Trump criticized Powell on Monday, called him “terrible”, and accused him of knowing “what the hell he’s doing”. White House officials also attacked Powell at a balloon cost linked to the reconstruction of two fed buildings, now projected at $ 2.5 billion – a third more than originally estimated.
While Trump cannot legally fire the President of the Fed before politics disagreements, some legal interpretations indicate that removal could be possible “because of” such as poor management.
Basic inflation also rises
Core Inflation, which increased in June in June, the prices of volatile food and energy, increased by 2.9%in June, which is slightly 2.8%in May. Increased by 0.2% per month. Economists monitor basic inflation closely as a more stable indicator of long -term price trends.
FED FACES TIGHTROPE
Inflation tip can offer a temporary fed relief in the middle of a growing political pressure. Conflicting signals-better inflation along with economic uncertainty induced by trade-arrests anticipating the next step of the central bank.
The economy was doing well despite Powell, Trump claimed Monday, but said it would be nice if we had cuts, people could buy housing much easier.
(Tagstotranslate) CPI report
