US inflation jumps as Trump tariffs 'bite'
Consumer prices are climbing and the inflation rate rose to its highest level in four months
What happened
Consumer prices rose 0.3% in June, according to Labor Department data released Tuesday, pushing the annual inflation rate to 2.7%. That's the highest rate since February.
Who said what
While the inflation numbers aren't "as bad as expected," they suggest that President Donald Trump's import tariffs are "starting to bite," Heather Long, the chief economist at Navy Federal Credit Union, told CNN. "A long stretch when Trump's policies left little imprint on the hard data appears to be ending," said The Wall Street Journal.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Shortly after the report was released, Trump posted on Truth Social that the Federal Reserve should cut interest rates "NOW!!!" But the new data will likely undermine Trump's "massive pressure campaign" on Fed Chair Jerome Powell, said Politico. The report deals a "knock-out punch to the tariff inflation deniers," Samuel Tombs of Pantheon Macroeconomics said in a note to clients.
What next?
Price pressures could "intensify over the coming months," said The New York Times, especially if Trump's threatened tariffs on the European Union and other countries come into effect on August 1. A decision about whether to cut interest rates will come after the next Fed meeting at the end of July.
-
The environmental cost of GLP-1sThe explainer Producing the drugs is a dirty process
-
Greenland’s capital becomes ground zero for the country’s diplomatic straitsIN THE SPOTLIGHT A flurry of new consular activity in Nuuk shows how important Greenland has become to Europeans’ anxiety about American imperialism
-
‘This is something that happens all too often’Instant Opinion Opinion, comment and editorials of the day
-
House votes to end Trump’s Canada tariffsSpeed Read Six Republicans joined with Democrats to repeal the president’s tariffs
-
Bondi, Democrats clash over Epstein in hearingSpeed Read Attorney General Pam Bondi ignored survivors of convicted sex offender Jeffrey Epstein and demanded that Democrats apologize to Trump
-
El Paso airspace closure tied to FAA-Pentagon standoffSpeed Read The closure in the Texas border city stemmed from disagreements between the Federal Aviation Administration and Pentagon officials over drone-related tests
-
Judge blocks Trump suit for Michigan voter rollsSpeed Read A Trump-appointed federal judge rejected the administration’s demand for voters’ personal data
-
US to send 200 troops to Nigeria to train armySpeed Read Trump has accused the West African government of failing to protect Christians from terrorist attacks
-
Grand jury rejects charging 6 Democrats for ‘orders’ videoSpeed Read The jury refused to indict Democratic lawmakers for a video in which they urged military members to resist illegal orders
-
Judge rejects California’s ICE mask ban, OKs ID lawSpeed Read Federal law enforcement agents can wear masks but must display clear identification
-
Lawmakers say Epstein files implicate 6 more menSpeed Read The Trump department apparently blacked out the names of several people who should have been identified
