CPI inflation jumps in Jun. to 2.7% annual rate
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Consumer prices posted the biggest increase in June in five months and are likely to keep the Federal Reserve from cutting interest rates soon, but there only scattered signs of tariff-related inflation.
US inflation heated back up in June, rising to its highest level in four months, as higher prices — including those from tariffs — packed a bigger punch.
On a monthly basis, the headline CPI rose 0.3 percent, which was in line with forecasts. Core CPI rose 0.2 percent versus an expected 0.3 percent.
Underlying US inflation rose in June by less than expected for a fifth month, dragged down especially by car prices. The consumer price index, excluding the often volatile food and energy categories, increased 0.2% from May, according to Bureau of Labor Statistics data out Tuesday. On an annual basis, it advanced 2.9%.
The Bureau of Labor Statistics released its Consumer Price Index summary on Tuesday, which tracks how much inflation increased in the past month. The survey showed that the CPI increased 0.3 percent in June after it went up by only 0.1 percent in May. In the past 12 months, the index for all items jumped by 2.7 percent.