In June, the Consumer Price Index (CPI) in the US rose by 2.7% compared to the previous year, exceeding economists' forecasts.
Monthly and Yearly CPI Changes
According to data released by the US Bureau of Labor Statistics, the CPI increased by 0.3% month-over-month, marking the largest increase since January. Core inflation, excluding food and energy, rose by 2.9% over the past 12 months. This figure is slightly below the anticipated 3%, but significantly above the Federal Reserve's long-term target of 2%.
Increase in Core Goods Prices
The Bureau of Labor Statistics reports that shelter is the largest contributor to overall inflation, although its growth slowed to 0.2% for the month. Year-over-year, this category increased by 3.8%. Food prices rose by 0.3% in June and were up 3% over the past year. Energy prices, which declined in May, rebounded with a 0.9% monthly increase, albeit slightly lower compared to June of the previous year.
Trump Administration Economic Policies
Speaking at a press conference at the White House, President Donald Trump stated that inflation is no longer a concern. He commented that "the economy is roaring, business confidence is soaring, incomes are up, prices are down, and inflation is dead." However, economists express concerns regarding the tariff situation impacting price levels.
Despite the rise in the Consumer Price Index, financial markets continue to bet that the Federal Reserve may begin cutting short-term interest rates by September.
