Inflation strikes the highest level since February, when the number of customs tariffs begins to appear

The Ministry of Labor said on Tuesday, consumer prices increased by 2.7 % in June of the previous year. On a monthly basis, prices increased by 0.3 % from May to June, after only 0.1 % in the previous month.

The exacerbation of inflation is a political challenge for President Donald Trump, who promised during the presidential campaign last year to immediately reduce costs. The height of acute inflation after the epidemic was the worst in four decades, and most Americans were tense of former President Joe Biden’s dealings with the economy. It is also possible that the higher inflation of the Federal Reserve will increase The frequency in reducing the interest rate in the short termAs is Trump Loud demands.

Trump has repeatedly insisted that there is no “inflation” and because of this, the central bank should quickly reduce the main interest rate from its current level of 4.3 % to about 3 %. However, Federal Reserve Chairman Jerome Powell said he wanted to see how the economy interacts with Trump’s duties before reducing borrowing costs.

With the exception of the flying food and energy categories, the basic inflation increased by 2.9 % in June of the previous year, up from 2.8 % in May. On a monthly basis, it rose 0.2 % from May to June. Economists closely see the basic prices because they usually provide a better feeling of the place where inflation is heading.

The motivation behind inflation was driven by a range of high prices. The cost of gasoline increased by only 1 % from May to June, while grocery prices increased by 0.3 %. Device prices jumped for the third month in a row. Games, clothes, sound equipment, shoes and sports goods have become more expensive, all of which are heavily imported.

“I have started seeing scattered parts of the inflation system candidate in the tariff.”

Winograd also pointed out that housing costs, one of the largest inflation engines since the epidemic, continued to calm, proving wider inflation. The rental cost increased by 3.8 % in June compared to last year, the smallest annual increase since late 2021.

“Without the uncertainty in the customs tariff, the Federal Reserve would actually reduce interest rates,” said Winogerad. “The question is whether there is more in the future, and the Federal Reserve clearly believes its existence,” along with most economists.

Trump has imposed Comprehensive duties From 10 % on all imports, in addition to 50 % of steel and aluminum fees, 30 % on goods from China, and 25 % on imported cars. Only last week, the President threatened the European Union with a A 30 % new tariff starting from August 1.

He has also threatened to slap Duties of 50 % on BrazilWhich will pay the cost of orange and coffee juice. Orange prices jumped by only 3.5 % from May to June, which is 3.4 % higher than last year.

In general, grocery prices increased by 0.3 % last month and increased by 2.4 % from the previous year. While this is a much smaller annual increase by the epidemic, it is slightly larger than increasing the frequency of prenatal food. Trump’s administration has It also put a 17 % duty on Mexican tomatoes.

The acceleration in inflation can provide a break for the Federal Reserve Speaker Powell, who has reached An increasing heavy fire From the White House for not cutting the standard interest rate.

The President of the Federal Reserve said that Duties can pay prices and slow economyA difficult mix of the central bank because the highest costs usually lead to the leadership of the Federal Reserve to the rates of height while the weakest economy often drives it to reduce it.

Trump said on Monday that Powell was “terrible” and “he does not know what hell’s right.” The president added that the economy was good despite Powell’s refusal to reduce prices, but it would be “nice” if there are price cuts “because people will be able to buy housing much easier.”

Last week, White House officials He also attacked Powell For costs to renew for a year for a year for the FBI buildings, which are now scheduled to cost $ 2.5 billion, or nearly a third of the budget. Although Trump could not shoot law just because he does not agree to interest rate decisions, the Supreme Court has indicated, he may be able to do so “for the cause”, such as misconduct or mismanagement.

Some companies said that they have or plan to raise prices as a result of tariffs, including Wal MartThe largest retail dealer in the world. Car Industry Company Mitsubishi Last month he said that it raises prices by 2.1 % on average in response to the duties He said “Surgical” prices will be implemented to compensate for the costs of customs tariffs.

But many companies managed to postpone or avoid increasing prices, after building goods stocks this spring this spring to advance duties. Other companies may have declined to raise prices while waiting to see if the United States is able to reach commercial deals with other countries that reduce duties.