The consumer price index (CPI) increased 0.3% in June, reaching a 12-month inflation rate of 2.7%. Core inflation rose 0.2% on the month, with an annual rate of 2.9%, closely aligning with estimates.
While some signs suggest tariffs are having an impact, apparel and home furnishings prices saw gains, while vehicle prices fell. Shelter prices increased 3.8% from a year ago, driven by a rise in what homeowners can receive if they rent their properties.
President Donald Trump used the report to call for lower interest rates, despite the Federal Reserve maintaining its stance of keeping rates steady. The president expressed his support for a 1 trillion-dollar rate cut, citing low inflation and potential savings.
Markets largely responded calmly to the inflation report, with stock market futures mixed and Treasury yields mostly negative. Central bankers, led by Chair Jerome Powell, have insisted that the US economy is strong enough to afford waiting on tariffs’ impact on inflation before easing interest rates.
Source: https://www.cnbc.com/2025/07/15/cpi-inflation-report-june-2025.html