Inflation heats up in June as President Trump’s tariffs begin to chew : NPR

[ad_1] <img src="https://npr.brightspotcdn.com/dims3/default/strip/false/crop/7752x5171+0+0/resize/1100/quality/50/format/jpeg/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fee%2F36%2Fcad7fd724a66991af6b9d1873af9%2Fgettyimages-2222942642.jpg" data-template="https://npr.brightspotcdn.com/dims3/default/strip/false/crop/7752x5171+0+0/resize/{width}/quality/{quality}/format/{format}/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fee%2F36%2Fcad7fd724a66991af6b9d1873af9%2Fgettyimages-2222942642.jpg" class="img" alt="Clothing prices jumped by 1% in June, contributing to a rise in inflation during the month. Imported clothing is one area where the effects of tariffs are beginning to be felt by shoppers." fetchpriority="high"/> Clothes costs jumped by 1% in June, contributing to an increase in inflation throughout the month. Imported clothes is one space the place the results of tariffs are starting to be felt by buyers. Chip Somodevilla/Getty Pictures North America cover caption

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Chip Somodevilla/Getty Pictures North America Inflation picked up steam final month amid early indicators that President Trump's tariffs are starting to impact the costs buyers see in shops.

Shopper costs in June have been up 2.7% from a yr in the past, in response to a report Tuesday from the Labor Division. That is a bigger annual enhance than the month earlier than.

Costs rose 0.3% between Might and June, additionally a sharper enhance than the earlier month.

Rising rents have been the principle driver of inflation in June. However the worth of clothes, home equipment and toys additionally jumped — which probably displays the results of import taxes. Clothes costs rose 0.4% whereas the worth of home equipment and toys jumped almost 2%.

Vitality and meals prices have been additionally larger in June, whereas the worth of recent and used vehicles and airline tickets was down.

The president has imposed tariffs of a minimum of 10% on almost every thing the U.S. imports, with larger taxes on items from China. The federal government collected $27 billion from tariffs in June — a four-fold enhance from the identical month a yr in the past.

The common tariff on imported items is now the best it has been because the Nice Melancholy. And Trump has threatened to impose even larger taxes on items from many international locations, starting on Aug. 1.

Falling power prices had helped to maintain general inflation in verify in latest months. However gasoline costs rebounded in June. And electrical energy prices jumped by 1%, as sizzling summer time climate saved air conditioners busy.

The uptick in inflation final month cements expectations that the Federal Reserve will maintain rates of interest regular when policymakers meet later this month, regardless of mounting strain from the White Home for decrease charges. Buyers nonetheless assume a fee minimize is probably going in September.