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Tariffs partially to blame for inflation bump
Business & Economy
Business & Economy
The Big Story
What to know about the latest inflation report
Inflation moved up in June, due partially to businesses passing tariff costs onto consumers.
© Getty Images
Despite the uptick, President Trump is on the warpath for the Federal Reserve to cut interest rates, a move that would stimulate markets and investment, but that could also push inflation higher.
As tariff-induced inflation threatens to dominate the economic narrative, Trump and Fed chair Jerome Powell headed toward a collision. Treasury Secretary Scott Bessent said Tuesday that a “formal process” was underway to pick Powell’s successor.
Economists’ expectations for June inflation ranged from a 2.6-percent to a 3-percent annual increase, so the 2.7-percent jump reported Tuesday by the Labor Department lines up pretty squarely with forecasts.
Inflation increased for the second month in a row, up from a 2.4-percent increase in May and a 2.3-percent increase in April.
Taking out the more volatile categories of food and energy, the “core” consumer price index increased less than expected, rising to a 2.9-percent annual increase versus an expected 3 percent. That’s up from 2.8 percent last month.
The Hill’s Tobias Burns takes a deeper look at the June inflation report here.
Welcome to The Hill’s Business & Economy newsletter, I'm Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue.
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