Tue, 15 Jul 2025

Tue, 15 Jul 2025 US inflation rises as tariffs drive up prices

Energy and housing costs were the major drivers of inflation, but consumers are starting to feel the impact of tariffs on basic goods.

* US inflation rose 2.7% in the year to June, up from 2.4% in May
* Prices increased at the fastest pace since February, driven by higher energy and housing costs
* Tariffs imposed by President Donald Trump are starting to have an impact on consumer prices, with: + Coffee prices increasing 2.2% + Citrus fruits rising 2.3% + Toy prices up 1.8% + Appliance prices increased 1.9% + Clothing prices gaining 0.4% (first increase in months)
* Some analysts expect the impact of tariffs to become more pronounced in coming months
* President Trump has imposed higher tariffs on goods from several countries, including Canada and the EU, despite ongoing talks aimed at avoiding punishing duties
* The US central bank is resisting interest rate cuts, but some analysts believe a cut may be needed if inflation continues to rise.
  >>